Lotus claims NSEL owes it money

The lobby is awash with white, from the walls to the carpet. In the corner behind the receptionist’s desk are containers with the company’s products on proud display. Green and red containers along with yellow containing the product whose trade is the subject of the current controversy.

The office looks new and expensive, located not in Town Centre II as mentioned in the address on National Spot Exchange Ltd (NSEL)’s list of defaulters, but a short distance away at Boomerang, Chandivali, Maharashtra. Lotus moved a year ago, and the company denies that it owes any money. In fact, Viren Thakkar, the general manager-in-charge of corporate affairs, says the exchange owes the company money.

“We have an ongoing dispute, there are pending VAT (value-added tax), warehouse payments,” he says.

NSEL denies this. Both claim documentary evidence backing up their respective claims. Lotus says it is still working out how much they are owed. “We have a team of chartered accountants working with the legal team on the matter. We hope to have the final figures in two-three days,” says Thakkar.

The allegations haven’t hurt business too much though they have had a few enquiries from distributors, he said. “Not even a pin is bought without a bill.” The company hints that it is not without political resources should pressure come to bear upon it. Indeed, the office has photographs of the promoter with several political figures.

Thakkar adds that Lotus stopped trading with NSEL more than once. “We stopped trading with them two or three times over the payments.”

NSEL on its part rubbished the allegations. “…we would like to re-iterate that the exchange has confirmed communication from Lotus Refineries dated May 2013 accepting their net pay-in of Rs 241.56 crore as on the year ended March 2013. Also, the current pay-in obligation of Lotus includes post adjustments of warehouse charges and VAT (value-added tax),” it said in response to a query by Business Standard.

The exchange also says Lotus was declared a defaulter on August 22 with a net outstanding payment of Rs 252.56 crore. It also says it has filed a complaint against Lotus with the Economic Offences Wing of the Mumbai police and is taking legal steps on recovering the amount.

Lotus is preparing its own lawsuit against NSEL--a defamation suit which is expected to be in place soon.

Back in the lobby is a magazine with the chairman and managing director’s picture announcing plans to hit Rs 10,000 crore in turnover. The man behind the company is chairman and managing director Arun K Sharma. He is the man in the pictures with the politicians, and with the odd cricketer. He asks Thakkar about the visit from the media. He starts to say something and notices that it isn’t over yet. The promoter introduces himself and dispatches someone to fetch a card.

‘How are you?’

‘Fine…upar rab hain na…(God is above),’ he says.