NSEL scam: June recovery lowest

The exchange recovered a negligible Rs 1.64 cr in June, the lowest monthly recovery since the Rs 5,574-cr scam became public in July 2013

The National Spot Exchange Ltd (NSEL) and the agencies investigating a scam in the commodities bourse seem to have failed to recover money from defaulters and distribute it among the beleaguered investors. The recovery has reached a nadir in June.

The exchange recovered a negligible Rs 1.64 crore in June, the lowest monthly recovery since the Rs 5,574-crore scam became public in July 2013.

In consultation with the commodity derivatives market regulator, the Forward Markets Commission (FMC), NSEL had devised a strategy to recover the entire money in 30 instalments by March 7, 2014. The exchange has recovered Rs 355.63 crore so far, about six per cent of the Rs 5,574 crore.  “Our efforts are on,” said an exchange official. “The recovery process will be stepped up with the monetising of the attached properties.”

To speed up the recovery, the Economic Offences Wing (EOW) of Mumbai Police had attached properties worth over 90 per cent of the scam amount. The EOW sought permission from the Maharashtra Protection of Interest of Depositors court to monetise the attached assets. The court appointed Deputy Collector of Maharashtra to oversee auctioning of immovable properties of NSEL borrowers.