NSEL ex-CEO takes blame to save promoters

The NSEL's former MD and CEO Anjani Sinha has taken the blame for the NSEL fiasco. In an affidavit filed with a local magistrate, Sinha has also accused his senior team members for the mess, reports CNBC-TV18's Varinder Bansal.

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The move clearly indicates passing of blame to someone else. Anjani Sinha is taking the entire responsibility along with the senior members of NSEL and just moving the promoters from the fiasco's that happened in the company. Sinha has also blamed senior managers like Amit Mukherjee, business development manager and Ajay Bahkhandi, warehouse head for this entire fiasco along with few other people. But, he has clearly stated that promoters have not derived any advantage from the NSEL operations. In about13-14 page affidavit, it is mentioned that borrowers were not paying since last two years and they were aware of the entire mess that was going around. The problem was that if they had raised an alarm then it could have led to a bigger default and crisis at that point of time as well. The question which arises is that it was in hindsight, it was their mistake, yet they failed to stop it then. There were 25 borrowers out of which 19 have been already declared defaulters. Sinha has admitted that NSEL started as a trading exchange but later moved into a financing model. The process is like passing the baton not to the promoters but to himself where he has taken the entire blame and is also detailing each and every step NSEL went through. But Sinha says the only way to take money out is through borrowers who are unwilling to pay back.