HC panel seeks title deeds from Prime Zone in NSEL scam

ARK Imports ready to furnish, disposal of assets would start after securing title deeds from defaulters

The committee appointed by the high court here to expedite recovery of dues from defaulters at the scam-hit National Spot Exchange Ltd (NSEL) has ordered Prime Zone Developers to hand over original title deeds of its immovable properties, for speedy liquidation and recovery of Rs 40.6 crore.

Appearing before the committee, Shahista Pathan, counsel for Prime Zone, said the latter had “no objection” to the sale of its properties attached by the economic offences wing of the city police in the Rs 5,600-crore scam. The sale proceeds could be adjusted for the liability payable, he said.

The committee is securing transfer of title deeds in the name of the court receiver, so that these attached assets can be sold without hindrance.

Chaired by V C Daga, former judge of this high court, it has two other members, J S Solomon, advocate, and Yogesh Thar, chartered accountant.

In December 2013, Prime Zone had agreed to pay the entire dues of Rs 42.77 crore as on that date in instalments but has done so for only a negligible amount. This amount was jointly invested in Prime Zone’s projects at Karnal, Haryana, by three NSEL defaulters — PD Agro, Mohan India and Swastik Overseas. Of the entire amount, PD Agro’s contribution was Rs 31.1 crore and that of Mohan India and Swastik Overseas of Rs 10 crore and Rs 1.67 crore, respectively.

"The job of selling properties is assigned by the honourable High Court to the Court Receiver, who shall act as per the directions of the Court. So far as payment of stamp duty is concerned, the same shall be directed by the Court. The Committee has already started recommending sale of the attached properties for which time frame shall be as determined by the Court Receiver as per the order of the Court," said Justice Daga.
 

Tightening noose on defaulters
Name	Payment obligation (Rs crore)	Action	Next scheduled hearing
Prime Zone Developers	40.62	Title deeds sought	--
ARK Imports	719.29	Ready to tender title deeds	Apr-28
Swastik Overseas Corporation	92.95	Ready to give title deeds, cooperate	Apr-28
White Water	--	Compliance report	Mar-28
P D Agroprocessors	674.03	Compliance report	Mar-28
Yethuri Associates	399.6	Denied receipt of Rs 89-cr from NSEL, personal appearance	Mar-28
Source : Committee orders & NSEL

Efforts to reach Prime Zone Developers’ site office at Karnal did not yield any result.

Another defaulter, ARK Imports, has agreed to give the original title deeds of its attached properties for disposal and recovery of the remaining payable amount of Rs 719.35 crore. It is the second largest defaulter at NSEL and has transferred a sum of Rs 797,000 to the NSEL escrow account so far.

Once these properties are secured and title deeds are obtained, the auction cab start.

Meanwhile, an attempt to dispose of Mohan India’s bungalow and land in Delhi (5,666 sq ft) and 500.5 acres at Bikaner did not get a good response. Mohan India has a total payment obligation as on date of Rs 545.4 crore of the total original dues of Rs 600.1 crore as on July 2013, the time of the mass payment default.

Also, Swastik Overseas Corporation, with a payment obligation of Rs 92.95 crore, has agreed to give details of its immovable properties to the committee by March 28.