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In a major embarrassment for the ruling United Progressive Alliance (UPA), investors of the troubled National Spot Exchange(NSEL), after being cold shouldered by the central government, have sought the help of Gujarat chief minister Narendra Modi to recover their investments.
A group of investors led by NSEL investors forum convenor Sharad Saraf are meeting Modi in Gandhinagar today.
“Modi is the Prime ministerial candidate and shows interest in economic issues. Also, a couple of borrowers including the largest borrower NK Proteins are based in Gujarat. Therefore, we are seeking his help in the recovery,” said a large investor privy to the development.
The move may give fresh ammunition to the BJP star campaigner, who has been a vocal critic of UPA government's policies and actions in his recent rallies.
The central government had given hints that it is not very sympathetic to the cause of investors though it assured action by various enforcement agencies. Both Central Bureau of Investigation (CBI) and Serious Fraud Investigation Office (SFIO) are expected to go probe the matter. An SFIO probe was also said to have received official approval.
NK Proteins, a company owned by former NSEL chairman Shankarlal guru’s son-in-law, is the largest debtor to NSEL. Other Gujarat-based borrower was Swastik Overseas Corporation. Both entities dealt in Castor and castor oil and have combined dues of over Rs 1,060 crore.
These two entities account for nearly a fifth of Rs 5,600 crore the exchange owes to some 13,000 investors.
