NSEL puts Mohan India's Rs 700-cr assets on block

In a first attempt to auction immovable properties of defaulters, the scam-hit National Spot Exchange Ltd (NSEL) has put two assets of Mohan India, with an estimated value of Rs 700 crore, up for auction.

The spot exchange has finalised two global consultants, Knight Frank and Colliers International, to identify buyers for these properties.

NSEL has identified two properties of Mohan India -- a bungalow with associated land bank admeasuring 15,666 sq yards at Civil Lines in Delhi with an estimated value of Rs 400 crore, and land admeasuring 500 acres at Bikaner in Rajasthan with an estimated value of around Rs 300 crore -- for auction. The auction is likely to be conducted soon.

The two properties, along with many others, were attached by the economic offences wing of the Mumbai police under the supervision of the Maharashtra Protection of Interest of Depositors (MPID) court. NSEL has already obtained permission from the MPID court to auction attached properties of Mohan India and other NSEL defaulters.

"We have received title deeds and power of attorney of these two properties in our favour. In consultation with nominated agencies, including the Monitoring and Auction Committee (MAC) and competent authority (deputy collector in this case), we will take a call soon," said a senior NSEL official.

Apparently, Mohan India, the second-biggest NSEL defaulter after N K Proteins, with a payment obligation of Rs 908.9 crore, entered a settlement agreement with the exchange and agreed to pay Rs 771 crore. But Mohan India failed to pay even the first instalment. As on Monday, Mohan India has a total payment obligation of Rs 879 crore says the NSEL website. "We will help draft an auction plan for MAC and the competent authority, which in consultation with FMC will forward the same or modified plan to the MPID court. Finally, the court will direct us to take further auction," said the official.

But, the said properties of Mohan India would be the first to be auctioned, the official added.

NSEL is set to make the proposal to MAC and the competent authority this week to initiate auctions. "Even if we are getting lower valuation, it is okay. But, the process should be transparent and foolproof so that nobody questions the valuation in future," said the official.

Besides, NSEL has put a soya bean and mustard solvent processing plant, owned by Vimladevi Agrotech Ltd in Kota (Rajasthan), for auction. The plant is worth Rs 12-14 crore. Headed by Varun Gupta, Vimladevi owes Rs 13.94 crore to NSEL.