NSEL investors to protest tomorrow at lack of progress

Investors are irked at desultory recovery of their money

Investors in default-hit National Spot Exchange (NSEL), irked at the desultory recovery of their money, and in the probe into the scam, plan a mass protest on Saturday against the city police's economic offences wing (EOW).

“As the police commissioner has not given time even in eight months to (us), even after writing several letters, 500-600 of us investors shall gather at his office to show displeasure at various shortcomings in the investigation,” investor associations have said. It is a joint action planned by the NSEL Investors Forum, NSEL Investors Action Group and NSEL Investors Justice Group.

The investors are sore that moves by the central government and the Company Law Board to merge NSEL with parent firm Financial Technologies (FTIL) and to remove the latter's board have been stalled “by money power and legal might”.

They say the committee formed by order of the high court here for recovery of investor money has not been able to get back even one per cent. Assets worth Rs 6,000 crore of NSEL defaulters and those of all others accused in the scam were attached, to recover the money of investors. However, the borrowers have challenged the law in this regard, worrying the investors.

NSEL, promoted by FTIL, defaulted in August 2013, after suspending operations in end-July.

The investor associations have alleged new evidence shows FTIL and its then directing head, Jignesh Shah, were aware of all the financial activities in question. They've also complained that FTIL’s legal counsel and the public procecutor met at the EOW office earlier this week; they allege this suggests the probe is getting compromised.

The investors plan to file more petitions in court to get things moving. They want the FTIL board of directors replaced and an investigation team formed from multiple oversight agencies to probe.