You are here: Home » Markets » News
Business Standard

NSEL's settlement talks on with borrowers; size of 'haircut' the issue

ARK, the second largest defaulter owing Rs 719 crore, sought a massive 21% haircut which was denied by NSEL

Dilip Kumar Jha  |  Mumbai 

Jignesh Shah
Jignesh Shah

Settlement talks between National Spot Exchange (NSEL) and its second largest defaulter, ARK Imports, are locked over the size of the “haircut”.

With a payment obligation of Rs 719 crore, ARK, a Ludhiana-based raw wool importer, held several rounds of talks with NSEL officials for settlement of dues, with encouragement from the city police’s economic offences wing (EOW). However, it sought a 21 per cent cut in the amount owed, saying it could pay Rs 570 crore; NSEL has refused. ARK is scheduled to meet NSEL officials again on Tuesday.

“The offer was too little to accept. However, we are ready to facilitate recovery of investors’ money as smoothly as possible,” said an NSEL official.

The EOW has already attached ARK property worth Rs 450 crore, with another Rs 100 crore worth of assets identified for attachment. Kailash Agarwal, partner of ARK Imports declined to comment.

ARK had been evading settlement talks for almost three months, since its representative visited the EOW in early November 2013. This was despite repeated calls to sit for settlement talks with NSEL.

Discussions with three more defaulters—Yathuri Associates, Aastha Minmet and S R Bhalotia—are on.

Yathuri Associates, with dues of Rs 418 crore, has offered to pay only Rs 350 crore. Aastha and Bhalotia are in negotiations. The next round of talks with these defaulter borrowers is scheduled next week.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 08 2014. 21:22 IST