Latest news with #NSEL
Time of India
25-05-2025
- Business
- Time of India
No money trail, release flat attached in NSEL, says court
Mumbai: Observing that he was neither the decision-making authority nor was there any money trail connected to him, a special court recently ordered the release of a Pune-based flat belonging to a non-executive independent director of NSEL. This property was attached a decade ago by the state govt in connection with the multi-crore National Spot Exchange Limited (NSEL) scam. The court found that the property was acquired years before the alleged fraud commenced and that the competent authority failed to establish any "money trail" linking the flat to the illicit funds from NSEL. During the proceedings, the applicant, B D Pawar (73), produced certified copies of his sale deed from 2003 and an agreement from 2006 to prove his ownership predated the scam. "The attached property of B D Pawar has nothing to do with the tainted money of NSEL fraud," the judge said. Pawar served as a non-executive independent director of NSEL from May 15, 2007 to Aug 7, 2013. The judge found that he held no decision-making authority, and critically, there is no evidence of any financial link between him and NSEL's operations. "Admittedly, the position is that the property was purchased in the year 2006. The NSEL fraud started in the year 2008, and the fair contracts, which are illegal, started in the year 2009. The attached property of B D Pawar has nothing to do with the tainted money of NSEL fraud. Other than this, the competent authority did not establish the shortfall after considering the properties of Financial Establishments of NSEL and 25 defaulters," the judge said. The judge further stated that to attach and make absolute the private and personal properties of a director, member, partner, promoter, or manager of the Financial Establishments, the competent authority has to first establish the shortfall after exhausting their properties. "The NSEL and 25 defaulters are declared as Financial Establishments by the state govt... and this is upheld by the Supreme Court. The competent authority has not pleaded and not even made any evidence to establish what is the value of the property of the Financial Establishments, i.e. , NSEL, and what is the shortfall requiring attachment of the private and personal property of B D Pawar," the judge said. Pawar submitted that through an agreement dated Jan 31, 2006, he, along with seven others, including his wife, had entered into a Developers Agreement with a developer.
Indian Express
24-05-2025
- Business
- Indian Express
Court orders release of Pune property of independent non-executive director, says no money trail to ‘NSEL fraud' case
A SPECIAL court has set aside a 2015 attachment order issued by the state government and ordered the release of a property belonging to a 73-year-old non-executive independent director of the National Spot Exchange Limited, stating that it had nothing to do with the 'tainted' money of the alleged fraud case. The applicant, B D Pawar, had sought to cancel the attachment of his property in Pune, measuring about 250.83 square metres in 2015. The attachment order was issued by the state government under the The Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act. Pawar submitted proof of a sale deed of the attached property, dating back to 2003, and an agreement of 2006, claiming that it was purchased before NSEL commenced. He also said that the attachment order was only based on 'allegations' that the property was linked to the tainted money, without revealing anything about who made the allegations and what was the nature of the claims. Pawar also said that he was a non-executive director in NSEL from 2007 till 2013 and was not party to its daily functions, nor was he drawing a regular salary. He said that he only attended board meetings as an advisor and received fees for it. The competent authority opposing the plea to cancel the attachment said Pawar was a director in NSEL and hence was linked to the funds. The state government, through the police Economic Offences Wing, had attached properties in its probe in connection with the NSEL case, where it was alleged that investors were defrauded by being induced to trade on the NSEL platform, even as false accounts were created. 'To attach and make absolute the private and personal properties of director, member, partner, promoter, manager of the Financial Establishments, the competent authority has to first establish the shortfall after exhausting the properties of financial establishments. The NSEL and 25 defaulters are declared as financial establishments by the state government of Maharashtra and this is upheld by the Hon'ble Supreme Court of India. The competent authority has not pleaded and not even made any evidence to establish what is the value of the property of the Financial Establishments i.e. NSEL and what is the shortfall requiring attachment of the private and personal property of Mr. B.D. Pawar,' special judge V P Desai said in the order on May 19. The court also said that there is no money trail linking the property to the depositors' money.
Time of India
24-05-2025
- Business
- Time of India
Co accused in NSEL scam discharged under IBC clause granting immunity
Mumbai: Dunar Foods Ltd, an accused in the 2016 NSEL scam case involving alleged cheating and siphoning of funds, has been discharged from criminal proceedings. The court's decision was based on Section 32A of the Insolvency and Bankruptcy Code (IBC), which grants immunity to corporate debtors once a resolution plan is approved and management changes hands. In a recent order, special judge V P Desai referred to citations and said it was crystal clear that once the resolution plan forwarded by Resolution Professional is accepted by the NCLT, immunity cannot be denied to the corporate debtor. "The provision of section 32A is not to shield the wrongdoers. The extinguishment of the criminal liability of the corporate debtor is apparently important to the new management to make a clean break with the past and start on a clean slate. It must also not overlook the principle that the provision is part of an economic measure," the judge said. The judge further said that, thus, though it can be gathered that the company was involved in the offence committed by the prime accused, Surender Gupta in conspiracy along with others, as the resolution plan is accepted by NCLT, there is immunity to the corporate debtor. "Therefore, in view of section 32A (1) of IBC, as the corporate debtor cannot be liable for criminal proceedings committed prior to commencement of the Corporate Insolvency Resolution Process, M/s Dunar Foods Ltd needs to be discharged," the judge said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo The CBI alleged a conspiracy was hatched between 2007 and 2013 to defraud M/s PEC Ltd of approximately Rs 120 crore through fraudulent agro-commodity trades on the NSEL platform, with Dunar Foods Ltd identified as a major beneficiary. However, Dunar Foods Ltd sought discharge, arguing its financial creditor, State Bank of India, initiated insolvency proceedings. A resolution plan was approved by the National Company Law Tribunal on Nov 26, 2019, leading to a change in the company's management with a man being appointed as the Successful Resolution Applicant. The defence submitted that the new management, having paid the entire amount along with interest under the approved resolution plan, should not face ongoing criminal proceedings due to the protection offered by Section 32A of IBC. They cited several Supreme Court and high court judgments, emphasizing on the principle of a "fresh slate" for successful resolution applicants, preventing them from being burdened by pre-existing claims. The CBI opposed the plea, submitting allegations of fraudulent transactions and the company's alleged role as beneficiary of misappropriated funds. But the court noted CBI's arguments did not specifically address the applicability of Section 32A of IBC. The judge said the resolution plan for Dunar Foods Ltd was approved on Nov 26, 2019, and the company's criminal liability ceased from that date. Get the latest lifestyle updates on Times of India, along with Brother's Day wishes , messages and quotes !
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Business Standard
21-05-2025
- Business
- Business Standard
Stock Market LIVE: GIFT Nifty signals higher start for Sensex, Nifty; Asia-Pacific markets rise
Sensex Today | Stock Market LIVE on Wednesday, May 21, 2025: At 6:32 AM, GIFT Nifty futures were trading 37 points higher at 24,812, suggesting a higher start for the markets. 7:23 AM Stock Market LIVE Updates: Over 92% NSEL traders approve Rs 1,950 crore one-time settlement plan Stock Market LIVE Updates: Over 92 per cent of traders of the National Spot Exchange (NSEL) have approved the one-time settlement amounting to Rs 1,950 crore, the company stated on Tuesday. The company, backed by parent 63 moons technologies, had filed a scheme for settlement in the National Company Law Tribunal (NCLT), Mumbai, for a one-time amicable full and final settlement with 5,682 traders. The matter pertains to the payments crisis in NSEL in 2013, due to which traders' money was stuck for a long period. The settlement was originally proposed by the NSEL Investors Forum. READ MORE 7:16 AM Stock Market LIVE Updates: Loan growth, margin worries likely to weigh on LIC Housing Finance Stock Market LIVE Updates: The LIC Housing Finance (LICHF) results for the financial year 2024-25 (FY25) and Q4FY25 indicated slow loan growth and intensifying competition. The company is trying to move into higher-yield segments. The Q4FY25 net profit grew 25 per cent year-on-year (Y-o-Y) to ₹1,370 crore and the FY25 net profit grew 14 per cent Y-o-Y to ₹5,430 crore. READ MORE 7:15 AM Stock Market LIVE Updates: BSE's Asia Index expands offerings with four new factor-based indices Stock Market LIVE Updates: Asia Index, a subsidiary of BSE, on Tuesday launched four factor-based indices as part of its ongoing revival efforts over the past year. The company became a wholly-owned subsidiary of BSE in June last year after the exchange bought the stake previously held by S&P Dow Jones Indices. The indices launched include BSE 500 Enhanced Value 50, BSE 500 Low Volatility 50, BSE 500 Momentum 50, and BSE 500 Quality 50. According to the company, a key differentiator compared to similar offerings from NSE Indices is the frequency of rebalancing. The BSE indices will be rebalanced on a quarter-wise basis. 7:11 AM Stock Market LIVE Updates: Asia-Pacific markets mostly rise Stock Market LIVE Updates: Asia-Pacific markets mostly rise -- ASX 200 up 0.69 per cent -- Nikkei down 0.17 per cent -- Kospi up 1.08 per cent 7:08 AM Stock Market LIVE Updates: US markets end lower
Time of India
21-05-2025
- Business
- Time of India
Over 90% traders willing to settle: NSEL
MUMBAI: Nearly 13 years after the National Spot Exchange ( NSEL ) was forced to stop trading, putting thousands of traders in the commodities space in deep financial trouble, the bourse on Tuesday said over 90% of the large traders agreed to a one-time settlement (OTS) of their dues. Under the terms of the settlement that is being supervised by NCLT, NSEL, along with its parent 63 Moons Technologies , will pay Rs 1,950 crore in total to nearly 5,700 traders as the final settlement amount, the exchange said in a release. "This settlement would mean closure of legal cases against the group along with the assignment of all rights of traders in favour of 63 Moons," a release from the spot exchange said. Last year, the NSEL Investors Forum, a body of the affected traders, proposed the OTS to NSEL and its promoters. In early April this year, NCLT ordered an online vote on the resolution for an OTS. The month-long online voting process ended on May 17, and the results by a court-appointed scrutiniser were declared on Monday. It showed that nearly 93% of the affected traders in number and about 91.4% in value voted in favour of the resolution, thereby giving their consent to the scheme of settlement, the NSEL release said. "This settlement would bring major relief for the traders whose funds were stuck in the NSEL payment crisis which happened in July 2013," it said. All those who were to get up to Rs 10 lakh due to the payment crisis have already been paid their full dues in the last few years. Now, under the terms of the OTS, those who have dues aggregating more than Rs 10 lakh will get between 7.3% to 37% of their dues. This group of traders also received some funds in the last few years. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
