First-ever EOW-administered repaymment to NSEL investors effected

EOW plans repayment of another Rs one bn in next two months

Mumbai's Economic Offences Wing administered the first-ever repayment of as much as Rs 300 million to investors of the now defunct National Spot Exchange (NSEL). The EOW is one of several agencies probing the Rs 56-billion default in 2013 to  investors.

There were 26 defaulting entities which, after having borrowed from investors, declared they were unable to repay. Around Rs 5 billion has been given back to the investors since the default but this tranche is the first to be routed through the EOW, which had attached the properties of the defaulters and promoters/directors of NSEL.

According to sources, the EOW plans to administer repayment of another Rs one billion within the next two months. Around Rs 580 million is still with the EOW in an escrow account and it has asked the Bombay High Court for permission to distribute it.

A few days earlier, the EOW had successfully auctioned five properties of Mohan India, one of the defaulters, getting Rs 400 million. This money will be fully received in 45 days and then distributed, said a source.