NSEL fiasco: EOW to look into overreach issues of FTIL

The economic offences wing (EOW) is looking into matters of overreach by promoter company, Financial Technologies (FTIL). It is also focusing on allegations by NK Proteins, the largest borrowers’ against their joint venture partner- the Adani Group, reports CNBC-TV18’s Ashmit Kumar. 

The EOW believes that there is a prima facie case for suspecting the misuse of software used across FTIL and its subsidiaries across a number of platforms. There is a growing apprehension that communication on the NSEL server was routed through the FTIL server, which raises the question of FTIL as a promoter company exercising control beyond its mandate. Also read: MCX-SX undergoes top brass rejig; hunt for CEO still on NK Proteins has raised serious allegations against Adani Group. It had entered into a JV with the Adani Group for the purpose of exporting edible oil. However it had begun reporting heavy losses. NKP had attributed these losses to fudging of account by the Adani Group and parking of losses of other Adani Group companies into this JV. That is one new area of investigation. The EOW will be looking at allegations of fudging of accounts. Whether the losses were genuine and bondafide or if the Adani Group was indeed parking losses of other companies into this one joint venture is being looked at. Three of the six main borrowers, who had not appeared before the EOW, have too been questioned over the course of this week. After the Diwali break, NSEL directors would be back on the radar and are likely to be called in for questioning next week.