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The Supreme Court on Wednesday formed a high-level committee, headed by Retired Bombay High Court Judge Pradeep Nandrajog, for recovery of money from the defaulters against whom National Spot Exchange (NSEL) has secured money decrees.
NSEL has already secured decrees and arbitration award of ₹3,534 crore against the defaulters. Further, defaulters’ liabilities of ₹760 crore have already been crystallised by the committee appointed by the Bombay High Court, said the exchange on Wednesday.
Proceedings for decree against NK Protein worth ₹964 crore is pending before Bombay High Court.
In 2013, investors and traders in NSEL lost about ₹5,600 crore after the exchange shut trading abruptly leading to series of default.
Attachment of assets
Two of the defaulters have already paid their liabilities worth ₹196 crore. The recovery from the defaulters stands at ₹5,455 crore and their attachment of assets are sufficient to cover all the genuine claims of the trading client, said the exchange.
The claims will be verified by the Supreme Court-appointed committee. The serious fraud investigation office has stated that they have received claims worth ₹2,240 crore, of which ₹935 crore appears to be doubtful, said the defunct exchange.
In August 2013, NSEL had taken a loan of ₹179 crore from 63 moons technologies, which will also be recovered from the defaulters. NSEL used the loan to repay traders having claims of up to ₹2 lakh in entirety and those with claims between ₹2 lakh and ₹10 lakh by up to 50 per cent and the remaining was paid recently.
The Supreme Court-appointed committee will oversee sale of assets, attached by the Maharashtra government under the MPID Act and Enforcement Directorate across India.
Execution of decrees
The execution of the decrees, which, otherwise, would have to be carried in the district/sessions court at the respective locations of the defaulters will now be executed by the Supreme Court committee and recoveries will be much faster, it said.
Post-recovery, the committee is also empowered to conduct an equitable distribution of the sale proceeds after verification of claims.
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