Hopes for the 15,000-odd retail investors whose money is stuck with the National Spot Exchange (NSEL) receded further on Monday with the defaulters’ list getting longer.
The beleaguered exchange, which had last week declared nine of its 24 members/ planters as defaulters, would be forced to add four more members to the list this week.
The exchange,which had collected only Rs8.5 crore as part of its scheduled second weekly pay-in till Friday, on Monday reported collection of a further Rs3 .4 crore.
Together, the amount collected is less than 7% of the planned pay-in amount of Rs174.72 crore for the week.
For the first week, ended August 16, NSEL had collected Rs92.31 crore.
With this, the exchange has managed to collect just Rs104.21 crore in the first two weeks, as against Rs349.44 crore it had committed earlier.
The failure of the members to meet their pay-in obligations means the 148 odd main investors, who have to receive Rs5,574 crore, will have to wait way longer than the seven months committed by the exchange earlier.
The fresh four defaulters this week include Mohan India, Namdhari Food International, Namdhari Rice and General Mills and Swastik Overseas Corporation.
The nine entities who had not paid a single penny in the first week and were declared as defaulters by NSEL and other stock exchanges include ARK Imports, Loil Overseas Foods, Lotus Refineries, N K Proteins, NCS Sugars, Spin Cot Textiles, Tavishi Enterprises, Vimladevi Agrotech and Yathuri Associates.
Of the nine defaulting members as at the end of last week, the exchange has initiated cases for investigation against five Ark Imports, Lotus Refineries, NK Proteins, Vimladevi Agrotech and Yathuri Associates – who collectively owe Rs2,378 crore to the exchange. These five members do not have adequate commodities in the warehouses, which is against the exchange rules.
“Non-delivery of commodities or its withdrawal is a breach of faith and breach of contractual arrangements. Exchange will also take similar recourse for other defaulting members who are not cooperating. As informed earlier, the NSEL board has already initiated investigation against the management team and its ex-MD & CEO,” the exchange said in a press release.
NSEL is likely to recover the dues from NK Proteins which owes it the most, at Rs967.15 crore by sale of its assets, as per the latest exchange update.
Chairman resigns: Shankarlal Guru, the non-executive chairman of NSEL, resigned on Monday.
“The government should take the (NSEL) money and return the hard-earned money of the investors. The bad people should be punished,” Guru told PTI.