Kalimirchi Vyapari Association withdraws case against NCDEX

Association had sought delivery of pepper from NCDEX which exchange defaulted due to factors beyond its control

Kalimirchi Vyapari Association has withdrawn the writ petition filed against the National Commodity & Derivatives Exchange (NCDEX) in the High Court of Madhya Pradesh, Indore, seeking direction for delivery of pepper as per contract specification.

 

The Association had filed the petition on behalf of its members seeking delivery of pepper from NCDEX 

 

 The Food Safety and Standard Authority (FSSAI) sealed six warehouses accredited by NCDEX on December 18, 2012, two days ahead of the December contract expiry.

 

Since, the contract specification approved by the Forward Markets Commission (FMC) does not specify testing of mineral oil mandatory for delivery, the commodity stored in the warehouse was not violating any regulatory guidelines.

 

When the matter came up for hearing at MP High Court at Indore today, Sr. Counsel of Supreme Court Ravindra Srivastav appearing for the association, preferred to withdraw the petition, in view of objections raised by NCDEX on maintainability of the petition, an NCDEX statement said.