NSEL Row: HC orders defaulting firms to deposit Rs 157.5 crore

In the National Spot Exchange Ltd (NSEL) case, the Bombay High Court on Wednesday (February 3) ordered the defaulting companies to deposit a sum of Rs 157.5 crore within a month. The order has come as a relief for NSEL.

Based on admissions of liability made by defaulting trading members a division bench directed them to deposit Rs 12.5 crore and Rs 145 crore, respectively, with the HC within four weeks.

Justice V M Kanade, who headed the bench, said that if any sum has been deposited earlier in the High Court, it can be deducted from these amounts.

The order was delivered on an appeal filed by defaulter members against a decree in favour of NSEL, lawyer of the spot exchange Ameet Naik told PTI.

The total amount secured for recoveries stood at Rs 4515.93 crore, of which Rs 1233.02 crore is by way of decree, an NSEL release said.

The exchange is facing Rs 5,600-crore payment default involving around 13,000 investors across the country. Aggrieved investors have moved the High Court to recover their monies.

A Special Court formed under Maharashtra Protection of Investors Deposits (MPID) Act recently ordered sale of property of a defaulting member of NSEL, Mohan India Group, worth about Rs 350 crore.

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