NSEL is Successfull In Making Recovery Efforts

In the Final Merger order, it has been acknowledged that the monies are to be recovered from the NSEL defaulters. If that is so, then it is difficult to fathom what purpose would be served by amalgamating NSEL with FTIL instead of pursuing the  NSEL defaulters. The answer comes in the Final Order, which states that the merger is aimed at speedy recovery of dues from the NSEL defaulters by utilizing FTIL’s resources well, if that is the sole objective then the merger is not the right solution.

Further, although the final order has failed to demonstrate how merging NSEL with FTIL will achieve the recovery of dues since even the resulting merged entity will continue to pursue recovery suits against the NSEL defaulters. Currently, NSEL is anyways pursuing the same with the full financial support of FTIL for legal expenses.

Recovery Efforts by NSEL

When the merger was being forced on FTIL to ensure recovery from 22 defaulters, the MCA should have considered that Rs.542 crore has already been paid off. It is incorrect to state that the process of recovery of dues by NSEL is very slow. There have been several positive developments in the last two years, which establish that NSEL’s recovery has been speedy and efficient; for instance

1.       NSEL has been successful in obtaining decress on admission against five defaulters from the Bombay High Court, to the tune of Rs. 1,233.02 crores

2.       NSEL successfully obtained injunctions against the assets of 18 NSEL defaulters from the Bombay High Court in respect of claims of Rs. 4,515.93 crores

3.       A significant part of the entire claim has therefore, been secured and Rs. 542.99 cores is already paid by NSEL

4.       The economic Offences Wing (EOW) has attached assets worth more than Rs. 6,000 crores belonging to NSEL defaulters

5.       The Enforcement Directorate (ED) also attached the assets of NSEL defaulters worth Rs. 837.01 Cr. On the basis of the money trail

6.       In view of the forgoing, more than 100% of  the claims of the traders  are secured by way of injunction ,decree & attachments against the NSEL defaulters.