Latest news with #NationalSpotExchangeLimited
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.
