Shankarlal Guru, Chairman of National Spot Exchange Ltd. (NSEL), has resigned on August 19. Mr. Guru is father-in-law of Nilesh K. Patel, owner of N. K. Proteins Ltd., which owed the commodity exchange Rs.969.89 crore to settle its positions.

Earlier, two of its directors, R. Devarajan and P. R. Barpande resigned.

Complaint against defaulting members

Meanwhile, NSEL, on Monday, said that it had filed complaint with investigation authorities against five defaulting members. Among the nine defaulting members, the exchange has initiated case for investigation against five who did not have adequate commodities in the warehouses, which is against the mechanism specified in the exchange circulars, NSEL said in a release.

“Non-delivery of commodities or its withdrawal is a breach of faith and breach of contractual arrangements,” it added.

“As per the rules and bye-laws, the exchange has asked these defaulting members to submit their books of accounts and hand-over all the collaterals to the exchange,” said NSEL. The exchange had appointed SGS to carry out quality and quantity inspection of the commodities lying in the warehouses and “their reports are being received in stages based on the inspection being done.”

The five defaulters against whom NSEL has filed complaint are: ARK Imports Pvt. Ltd., Lotus Refineries Pvt. Ltd., N. K. Proteins Ltd., Vimladevi Agrotech Limited and Yathuri Associates. The other four defaulters are: LOIL Overseas Foods Ltd., NCS Sugars Limited, Spin Cot Textiles Pvt. Ltd. and Tavishi Enterprises Pvt. Ltd.

Meanwhile, National Bulk Handling Corporation Ltd. (NBHC), on Monday, explained in a release its position and association with NSEL stating that “they are totally different entities and that they do not handle NSEL warehouses except for stocks at five warehouses which have recently been taken over.”