Guj HC dismisses NK Proteins' plea against Maha govt order

The Gujarat High Court today dismissed a set of petitions filed by the edible oil company NK Proteins against Maharashtra government's order to attach its properties in the National Spot Exchange Limited case.
The division bench of Chief Justice R Subhash Reddy and Justice V M Pancholi, however, allowed the company to approach a court in Maharashtra.
NK Proteins, based in Gujarat, was the biggest defaulter of the commodity exchange NSEL which went belly up in 2013.
The HC allowed the company to approach the special court set up under the Maharashtra Protection of Interest of Depositors (MPID) Act.
In November 2013, the Mumbai police had asked Ahmedabad Collector to attach the properties of NK Proteins in the Rs 5,600-crore NSEL default case to recover depositors' money.

When the company moved the Gujarat HC against this order, NSEL and the depositors who had lost the money objected. As the FIR had been lodged in Mumbai, the matter should be heard by the special MPID court in Maharashtra, they said.
NSEL went belly up on July 31, 2013, after the Union Government ordered its shutdown for violation of norms.
NK Proteins, one of the top edible oil players of Gujarat, emerged as the top NSEL borrower-defaulter, having payment obligations of Rs 970 crore.