NSEL case:Centre requests Maha govt to expedite assets auction

Multiple agencies, including ED and CBI, are probing the matter for fraud to the tune of Rs 5,600 crore by duping investors

The Centre has requested the Maharashtra government to expedite auction of properties attached in the Rs 5,600 crore NSEL payment crisis matter and also deploy full time "competent authorities" for dealing with work related to the defunct exchange.

Providing an update on the NSEL case, Finance Minister Arun Jaitley also told the Lok Sabha that Sebi is examining audit reports related to five brokers in the matter.

Multiple agencies, including Enforcement Directorate and CBI, are probing the matter for fraud to the tune of Rs 5,600 crore by duping investors.

"The Government of Maharashtra has been requested to strengthen the EoW, Mumbai Police, increase the number of designated courts under MPID Act, deploy full time competent authorities for dealing exclusively with NSEL-related work and approve panel of evaluators and auctioneers to facilitate early auction of attached properties," Jaitley said.

MPID Act refers to Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999.

So far, five gazette notifications have been issued with respect to attachment of assets worth Rs 6,115.25 crore.

"The state government has been requested to expedite the auction of properties attached with a view to refunding the amounts to the investors," Jaitley said in a written reply.

Meanwhile, EoW is awaiting the decision of MPID Court on a proposal to pay the remuneration of two forensic auditors appointed by the Maharashtra government from the auction proceeds in the case.

In 2015, the state government had appointed two forensic auditors, who rendered their assistance to EoW in the investigation.

"However, due to pending issue of remuneration, they have stopped their audit work. A proposal to disburse their remuneration from the auction proceeds in this case has been submitted by EoW, Mumbai Police for decision in the MPID Court," the Minister said.

With regard to the case, Corporate Affairs Ministry has ordered merger of NSEL with parent firm FTIL. Besides, the Ministry has sought disqualification of directors of the earlier and existing boards of FTIL.

"The actions taken by the Ministry of Corporate Affairs in respect of FTIL/ NSEL await judicial decision/ pronouncement," Jaitley said.

The Enforcement Directorate has filed a prosecution complaint before PMLA Court, Mumbai againt NSEL and 67 others in March 2015.

"CBI registered a case each against NSEL and Projects and Equipment Corporation of India Ltd and NSEL and Metals and Minerals Trading Corporation of India Ltd on February 12, 2014 and June 18, 2014, respectively," Jaitley said.