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Threat of EOW action spurs NSEL defaulters to settle dues

NCS to pay dues in a year, P D Agro likely to sign pact by Friday

Dilip Kumar Jha  |  Mumbai 

Amid threat of further action by the economic offences wing (EOW) of the city police and efforts by the Spot Exchange Limited (NSEL) and Financial Technologies (India) Limited, or FTIL, NCS Sugars has signed a settlement agreement with the lender with a 13 per cent ‘haircut’.

Hyderabad-based NSEL’s 16th-largest defaulter borrower, with dues of Rs 57.85 crore as on Wednesday, inked an agreement to pay Rs 50 crore in 12 months. Sources said the company had pledged shares and movable and immovable assets worth Rs 100 crore for repayment.

NCS has agreed to pay Rs 2 crore a month for five months and Rs 6.17 crore thereafter. NCS has offered a collateral of 525,000 shares of NCS Industries, with the right to appoint an NSEL nominee as a director on the board, and properties of Rs 102 crore.

P D Agropro-cessors, the third-largest defaulter, is set to sign a settlement agreement by Friday. While the negotiations were in an advanced stage, sources said the NSEL had prima facie agreed to settle PD’s account with a six per cent haircut. “We are seeking a seven-eight per cent haircut. We are looking at the option that extra charges are paid by them (NSEL). By all means, we will sign the settlement agreement by Friday,” said Director Mohit Agarwal.

“We are looking to ink a settlement pact with NSEL, along with other group companies, including Aastha Minmet India, with a small payment obligation,” said Agarwal.

EOW has already arrested Nilesh Patel, managing director of N K Protein, NSEL’s largest borrower with Rs 969 crore of payment obligations along with Arun Kumar Sharma, chairman and managing director of Lotus Refineries, NSEL’s 9th largest borrower with payment obligations of Rs 252 crore. The agency also investigated a number of other borrowers seeking details of money trail.

EOW recently informed that PD has evinced interest in settling its account alongwith its sister companies like Juggernaut Projects and Aastha Minmet India with NSEL. Agarwal met with EOW officials to facilitate settlement. “We are looking to ink settlement pact with NSEL along with other group companies including Aastha Minmet India with a small payment obligations,” said Agarwal.

P D, with Juggernaut Projects and Aastha Minmet India, had payment obligations of Rs 885 crore as on August 16.

“NSEL had set a time frame of five years. But suddenly, they are asking us to pay in maximum two years. We are looking at three years. Around 400 people are working with us. We are not going to shut down our shops and selling all assets to pay NSEL dues overnight. While we appreciate investors’ concerns, we should also given enough time to arrange such a large fund for repayment. We therefore, are looking at three years and distribute the payable fund proportionately,” said Agarwal.

Earlier, Mohan India, one of the largest NSEL defaulters, agreed to pay Rs 771 crore in one year.

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First Published: Wed, January 22 2014. 22:34 IST
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