Bombay HC summons Motilal Oswal's representatives in NSEL default case

The Bombay High Court (HC) has summoned senior representatives of Motilal Oswal (MOPL) to appear before it on Thursday, in the National Spot Exchange (NSEL) default case. 

The summon pertains to a commercial suit filed about 18 months ago in the court by Ketan Shah, claiming a loss of Rs 230 million due to mis-selling by MOPL. Ketan Shah is an investor in the scam-hit NSEL and member of the NSEL Investors Action Group. According to the complaint, MOPL had promised the trade in NSEL contracts to be “risk-free arbitrage products with assured returns”.

Shah also claims to have lost money because of false assurances by the brokerage. 

MOPL had also changed the Unique Client Code (which is permitted only under special circumstances), on a routine basis, and the purchase was affected in a dummy code/ proprietor code without giving providing information to him, Shah claimed.

The Bombay HC has also asked MOPL to provide an explanation on the “gift” sent to the judge hearing the case filed by Shah.

A company spokesperson said, “We will not be able to comment any further on this matter at this stage, as the matter is sub-judice before the Hon’ble High Court.”