NSEL probe: MCA expects financial reports from RoC in few weeks

Sachin Pilot says will look for any non-compliances with companies law

Corporate Affairs Minister Sachin Pilot on Monday said he is expecting financial reports and other details from Registrar of Companies (RoC) on crisis-ridden NSEL's parent firm FT group and other related entities in few weeks.
 

Asked about the probe into NSEL matter, Pilot said, "We have asked Registrar of Companies to give us a full report of companies in question, and we will look for any non-compliances with companies law."
 

 "We asked the department to send the report as quickly as possible. In few weeks time, (we) will have the report," he told reporters on the sidelines of an event organised by Confederation of Indian Industry (CII) on CSR.
 

  NSEL, promoted by Jignesh Shah-led Financial Technologies group, is already being probed by various other regulators and investigative agencies with regard to a Rs5,600-crore payment default and persistent violations of various regulations.

The Ministry of Corporate Affairs (MCA) had previously asked RoC Mumbai to collect details of NSEL and other group entities. Besides, NSEL, FT group has promoted the country's top commodity bourse MCX (Multi Commodity Exchange), stock exchange MCX-SX, and also entities engaged in the business of clearing corporation and exchange technology solutions, among others.
 

Last week, Finance Minister P Chidambaram had said that NSEL was violating rules from the day one and the matter was being looked into by MCA, CBI and commodity markets regulator FMC, among others. "Whatever the Finance Ministry has asked us to do, we are doing it. We hope that we would be able to pin-point any non-compliances committed.

The idea is to enforce the regulatory environment we have," Pilot said. Earlier, the MCA had sought from RoC a report on NSEL under Section 234 of the Companies Act. Under this section, the RoC has powers to call for any information or explanation from a company.
 

After receiving a report from RoC under this section, the central government can appoint one or more competent persons as inspectors to investigate the affairs of a company and submit a probe report.