NSEL wins decree against ARK Imports

Bombay High Court orders sale of ARK's properties to recover Rs 719 cr

Defunct commodity trading platform National Spot Exchange (NSEL) has won a case against ARK Imports, one of its largest defaulters, with the Bombay High Court passing a decree against ARK for selling its property to recover Rs 719.37 crore dues.

Ludhiana-based ARK had a total payment obligation of Rs 719.50 crore, of which the company paid a small sum. Considering interest on dues, the company owes NSEL Rs 719.20 crore as on July 27.

On July 20, judge S J Kathawala of the Bombay High Court passed a decree on admission for an amount of Rs 719.37 crore in the case of ARK. With this the total default amount against which the Court has issued decrees stands at Rs 1,233.02 crore.

“This decree passed by the Bombay High Court is a major shot in the arms of NSEL’s recovery efforts. We are looking forward to similar decrees against other defaulters. The NSEL has been relentlessly working to recover the amounts due from these defaulters. Let this also be appreciated by those who, on the one hand, are running a calumny campaign against all in NSEL and muffling the voice of the genuine trading clients on the other hand,” said Prakash Chaturvedi, joint managing director, NSEL.

NSEL said in a statement that it achieved this breakthrough single-handedly, without any support from traders’ forums, brokers or the Forward Markets Commission.

NSEL has also obtained injunctions to the tune of Rs 3,055.27 crore from 17 defaulters. So, decrees and injunctions worth Rs 4,288.29 crore have been awarded in favour of NSEL for recovery.

“We want stakeholders to join the sustained battle against the real culprits. With their cooperation, NSEL will be able to formulate a holistic strategy and plan to effect speedy recovery from the defaulters. We believe the only solution is that all victims should get together on a common mission of recovery rather than running vested interest agenda of someone against NSEL,” said Chaturvedi.