Nationwide I-T survey on NSEL members

Operations being carried out at premises of over 24 members of the exchange across country

The income tax (I-T) department on Thursday conducted survey operations on the business premises of 24 members of the crisis-ridden National Spot Exchange Limited (NSEL), facing irregularity charges in settling Rs 5,600 crore of dues to investors.

This included two Gujarat-based groups, N K Proteins and Swatik Overseas Corporation, sources in the I-T department in Ahmedabad said. NSEL says N K Proteins owes Rs 967 crore, around 17 per cent of the total funds availed from NSEL, and declared as a defaulter along with others. Swatik Overseas has to pay Rs 98 crore towards the settlement.

I-T sources said the searches were being done in Mumbai, Hyderabad, Ahmedabad, Mehsana, Deesa, Akota, Kolkata, Nagpur, Jaipur and some other locations. "These groups are involved in the recent controversy regarding payout default on NSEL,” they said.

The I-T department has also begun to check the stocks in the warehouses of these companies, to check the account books and transactions to ascertain any possible tax evasion and verify their claims of huge dues, they said. "The survey operations are still continuing. Examination of documents found, verification of stock found and further enquiries as necessary are being conducted," a senior I-T official in Mumbai said.

NSEL has been able to settle only Rs 92 crore of the first lot of commitments it made of settling Rs 174.7 crore. It has dismissed its managing director and six other top executives in the wake of these developments.

The Forward Markets Commission on Wednesday, directed NSEL to initiate the auctioning of defaulters’ assets.