Mohan India under ED scanner

Several entities that transacted with Delhi-based NSEL borrower have received income tax notices

Enforcement Directorate (ED), the central agency that monitors money laundering and foreign exchange violations, has begun the probe of Mohan India, one of the largest borrowers of the troubled National Spot Exchange (NSEL).

ED officials visited the premises of Mohan India and inspected books and other records on Tuesday, according to sources familiar with the development.

Delhi-based Mohan India and its group firm Tavishi Enterprises around Rs 950 crore to NSEL against trades in Sugar contract, according to the details published by the exchange.

Both entities are floated by Delhi-based realty baron Jagmohan Garg who runs the Merababa Reality group. The group runs the Radisson Blue hotel and the popular GD Goenka school.

Mohan India has so far paid only a single instalment of Rs 25 crore against its dues of Rs 605 crore, whereas Tavishi has not paid anything at all. The latter has moved court challenging the entire amount of Rs 347 crore.

In September Business Standard had reported that investigators have found money trail of over Rs 300 crore which has been moved to several unrelated entities from the bank accounts of Mohan India after the payment crisis broke out in NSEL.

Income tax department, which is also probing the NSEL issue, has sent notices to all entities that have received money from Mohan India and had other transactions with the group.

These entities have been asked to explain the transactions, according to officials. Jagmohan told Business Standard that "Some good news (of settlement) is expected in a day or two." On the investigations he said, "Some officials have come and taken the details."


Investors hope the investigations lead to an early settlement. People familiar with the group said Mohan India has invested the money raised from NSEL in huge land parcels in areas which have long term appreciation potential.

But, these cannot be liquidated immediately. The group had offered a parcel of land in Delhi’s upmarket Civil Lines area. However, investors are said to have rejected the offer as the land’s value covered only a fraction of the outstanding dues. Jagmohan Garg did not respond to repeated calls or a text message sent to his mobile phone.

Capital Default

Mohan India, Tavishi owe around Rs 950 crore

Mohan India transferred significant sums to unrelated entities

IT, ED officials search premises, seek details

IT notices to all entities that transacted with Mohan India