Metcore blocks NSEL, SAIL from inspection of ferrochrome stocks

The inspection was intended following the order from the MPID court few weeks ago

In a violation of court order, the employees of Metcore Steel and Alloys Ltd restrained inspection of ferrochrome stocks to the representatives of the public sector Steel Authority of India (SAIL) and scam hit National Spot Exchange Ltd (NSEL) on Thursday.

The inspection was intended following the order from the Maharashtra Protection of Interest of Depositors (MPID) court few weeks ago allowing auction of Metcore's ferrochrome stocksworth Rs 91 crore under the supervision of the Monitoring and Auction Committee (MAC) appointed by the regulator the Forward Markets Commission (FMC). Metcorehas defaulted with Rs 95 crore of NSEL dues as on May 31.

"Following the court order, SAIL evinced interest in buying ferrochrome stocks lying with Metcore's warehouses. When a combined team of NSEL and SAIL tried inspection of ferrochrome stocks at Metcore's Tekkali near Vishakhapatnam warehouse, we were notallowed inside to take samples. Metcore employees blocked the path and did notallow us in," said an NSEL official who was a part of the team.

Metcore's total payment obligation was at Rs 114 crore in July last year of which the company paid Rs 19 crore so far. While an amount of Rs 95 crore still lying unpaid as on today. NSEL will be approaching MPID court this week for further direction in this regard, an NSEL official said.

Meanwhile, NSEL is planning to report the incident in writing to the Economic Offences Wing (EOW) of the Mumbai Police and seek coercive action against Metkore. NSEL has also requested EOW for attaching other assets of Metcore. Metcore director Prashant Boorugu dissociated himself from the controversy.