Mohan India seeks de-freezing of attached properties, approval of settlement pact

Approaches Bombay High Court for permission to sell assets

Delhi-based Mohan India (MI), the sole borrower of the Rs 5,600 crore scam-hit National Spot Exchange Ltd (NSEL) that has signed settlement agreement with the exchange, has filed an affidavit with the Mumbai High Court seeking approval of the pact.
 

NSEL’s second largest borrower with Rs 908.9 crore worth payment obligations to the exchange for the entire group companies, including MI and Tavishi Enterprises, agreed to pay Rs 771 crore with 15% haircut. But, the bipartite settlement pact was objected by the regulator Forward Markets Commission (FMC) which understandably wanted the process to go through as per the Bombay High Court direction.

 

“We filed an affidavit in the Mumbai High Court last week seeking direction including defreezing properties attached. Someone has to monitor the settlement proceedings,” said MI director Jagmohan Garg. The case was scheduled for hearing on Monday but deferred in the eleventh hour.

 

Under the terms of the settlement, according to Garg, MI has to pay a minimum Rs 25 crore per month and clear the entire dues of Rs 771 crore within a year.

 

“We have already offered immovable properties worth Rs 700-800 crore to NSEL as collateral but, the company is yet to take over the same. The property is already on the block. If others buy the same, we will use the proceeds for NSEL settlement,” said Garg.
 

the Enforcement Directorate (ED) had raided MI after the settlement and put properties under restrain which was later attached by the Economic Offense Wing (EOW) of the Mumbai Police. The investigating authorities have also seized the properties of MI’s another promoter Jayshankar Srivastavaa.

 

“Our entire properties are seized by the ED and other police authorities which unless be defreezed, cannot be monetized. Settlement can be honored only if we can sell the assets. 

 

Hence, the first thing is the direction from the Bombay High Court allowing settlement proceedings,” said Garg.

 

MI had agreed that he will pay  Rs 100 crore as a penalty followed by the immediate “contempt of court” action in case of default of the settlement dues as per the clause mentioned in the agreement. According to an official of the NSEL Investors’ Forum, MI is ready to pay Rs 59 crore, an amount currently under its possession, for which it awaits court direction.