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NSEL payment crisis: Investors pin hopes on govt

Write to new finance minister; say refunds, not arrests, their priority

BS Reporter  |  Mumbai 

Anjani Sinha

Investors on the National Spot Exchange (NSEL), which had defaulted by Rs 5,574 crore about 10 months earlier, are hoping the new government will do something effective to recover their dues. They have so far received only a tenth of the money.

Their spokesperson said while the promoters and management personnel of NSEL were in jail, those who’d borrowed the money were on vacation, without bothering to make payments due to the cumbersome judicial recovery process. ‘Our demand is that the 13,000 investors must get back their money,” said Arun Dalmia, secretary, NSEL Investors Forum.

He’s also written to the new Union finance minister to take up their case. “Till date, no significant recovery has been achieved in this scam, even though there is evident proof that the perpetrators have significant assets and 100 per cent of the fraud monies are intact in the form of real estate and other assets.”

The investors have also formed a Google group, on which one of them said last week that one of the largest borrower-defaulters is still free and on a cruise with family.

Dalmia also wrote to the new minister for law and justice to take up the case. “We are hopeful that the new government will ensure speedy recovery of our lost money,” he said.

Meanwhile, a sessions court here on Tuesday adjourned the bail application hearing of Jignesh Shah and Shreekant Javalgekar till June 2. Shah was head of Financial Technologies, which promoted NSEL; Javalgkar was group finance head. They were arrested by the city police here on May 7 for their roles in the NSEL scam and remain in judicial custody (jail).

Anjani Sinha, former chief executive of NSEL, has had his judicial custody extended till June 9. He had been told, early this month, to give a Rs 5 lakh surety to be released (he was arrested last October) but all his assets have been attached. He had requested to be allowed to offer the amount in cash but the court refused. His wife, Shalini Sinha, has been trying, unsuccessfully so far, to find a guarantor for the surety. She had earlier said no relation or anyone they know has come to help.

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First Published: Tue, May 27 2014. 22:44 IST
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