This Article is From Feb 25, 2015

Court Refuses Relief to NK Proteins in NSEL Case

Court Refuses Relief to NK Proteins in NSEL Case

Ahmedabad: The Gujarat High Court has refused to entertain petitions challenging Mumbai Police's notices for attachment of properties of NK Proteins in Gujarat in connection with the Rs 5,600-crore National Spot Exchange Limited (NSEL) scam.

"It would be appropriate if no interference is made, without entering into the merits, reserving liberty to the petitioners to move the Bombay High Court or any court subordinate thereto," Gujarat High Court Justice Paresh Upadhyay said, rejecting the pleas of NK proteins and others on Tuesday.

Mumbai Police had asked the Ahmedabad district collector on November 9, 2013 to attach the properties of NK Proteins. Owners of NK Proteins got a stay from the Gujarat High Court.

However, the complainants, including NSEL and the investors, objected to the stay and moved the High Court.

NSEL allegedly defaulted on repayments to the tune of Rs 5,600 crore a year ago, which hit some 13,000 investors.

NK Proteins, one of the top edible oil players of Gujarat, emerged as a top NSEL borrower-defaulter, having alleged obligations on the tune of Rs 970 crore.