NSEL accused face attachment of property

Receives recommendation from two Mumbai collectors for invocation of Maharashtra Act

National Spot Exchange Ltd’s promoters, directors and defaulters now face attachment of movable and immovable properties from the economic offences wing (EOW) of the police here, in connection with the Rs 5,600-crore payment disputes case.

The EOW has got a recommendation it had sought from the collectors of Mumbai District and Mumbai Suburban District for the invocation of provisions of the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, 1999, against these people. This would enable it to take action in this regard. EOW deputy commissioner Balsing Rajput told Business Standard: “We will issue notices from Friday onwards to the NSEL promoters, directors and defaulters under the Act’s provisions. (We) will be in a position to attach the movable and immovable properties of those against whom the FIR (police case) has already been lodged, on charges of cheating, forgery and breach of trust.’’

Deputy collectors from the two districts will be the ‘competent authority’ in line with the Act’s provisions. Once attachment is done by EOW, the competent authority comes into the picture for disposal of these through auction. The said Act envisages, on conviction, punishment for a promoter, partner, director, manager or any other person or employee of a financial establishment for a fraudulent default with jail up to six years and a fine up to Rs 1 lakh.

The government can conduct the attachment exercise through the appointment of a competent authority, pending further orders from the designated court.