The I-T department has raided the premises of NK Proteins and Swastik Overseas and is conducting checks on the amount of stock in each of the companies' warehouses, reports CNBC-TV18. The raids come in the wake of the Forward Markets Commission (FMC) instructing the National Spot Exchange Ltd (NSEL) on Wednesday to sell the stocks and assets of the defaulting members to meet payment obligations.
The FMC's order comes a day after NSEL defaulted on its first payment obligation to investors. The exchange was able to pay only Rs 92 crore out of the scheduled Rs 174.72 crore and informed that nine members (buyers) did not pay their dues.
NK Proteins owes NSEL nearly Rs 1,200 crore. The I-T department is likely to have searched warehouses of 24 NSEL borrowers across India. Sources in the ministry of consumer affairs indicate that an Executive Order by the President of India will be issued within the next two days. The NSEL issue is also being monitored by the Prime Minister.
Sources also add that the commodity markets and the FMC will be placed under the finance ministry after which the various regulatory agencies of the ministry will probe the NSEL scam. The NSEL has also been placed under SEBI’s purview.
In an official response, NSEL has stated that it has received Rs 40 lakh for the payout scheduled on August 27. The exchange added that an amount of Rs 174.72 crore was needed to fulfill the second round of payouts. The first round of payouts ran aground due to shortfall of Rs 81.99 crore.
Speaking to CNBC-TV18, NSEL promoter Jignesh Shah said he had briefed the FMC on the progress made, on the questions raised and is taking all effort to ensure a timely payout. Shah added that he is hopeful of reaching a solution soon.
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