National Spot Exchange Ltd (NSEL), on Wednesday, said that one of the major defaulters in its commodity trade, Mohan India Ltd, had agreed to clear its pay-in dues of Rs. 771 crore over a period of one year as part of its settlement obligations.
“Mohan India will make a down payment of Rs. 11 crore, and the balance will be paid over the next one year,” said a release issued here by NSEL.
“The payment is also securitised by land and property owned by Mohan India Group as collaterals,” it added.
NSEL is facing settlement crisis of pay-in and pay-out of around Rs. 5,600 crore. The Economic Offences Wing (EOW) of Mumbai Police had arrested its former Managing Director and Chief Executive Officer Anjani Sinha and a few key officials.
The EOW had also arrested Nilesh Patel, Managing Director of NK Proteins, the largest defaulter with over Rs. 900 crore outstanding to NSEL.
On Tuesday, for the 11th successive week, the NSEL failed to make its weekly payment to investors, as it has paid only Rs. 29.05 crore compared to its weekly settlement dues of Rs. 174.72 crore.
“Some of the big members who have pay-in obligations are co-operating with NSEL and the various NSEL Investors’ Forum (NIF) teams. This is a positive development in the recovery process post the payment crisis,” said Saji Cherian, MD and CEO, NSEL.
“Mohan India has finalised its commitment to complete the pay-in obligations with NSEL within a period of one year,” Mr. Cherian added.