NSEL crisis: Court summons commodity market regulator chief to decide on assets sale

The Bombay High Court on Wednesday asked heads of the Forward Markets Commission (FMC) and the Enforcement Directorate to appear before it on May 7, so that it can take decision about the liquidation of assets of National Spot Exchange Ltd (NSEL), which is embroiled in a Rs 5,600-crore scam.

The court of Justice S A Kathawala will sit at an unusual time of 9.30 am on May 7 specially to hear the matter.

The judge also asked the officials of Economic Offences Wing (EoW) and ED whether they had any objection if properties attached in the NSEL scam were sold and the proceeds deposited with the court.

The issue cropped up in a case filed by Mohan India, an NSEL investor.

The court suggested selling of the attached properties and giving the money to investors.

"Why you are raising technical objection? The property was purchased from the investors' money and by selling it the money should be given back to investors," Justice Kathawala said.

While an official of EoW said he had no objection, the deputy director of ED said the settlement would have to be done as per the Prevention of Money Laundering Act.

The ED official also contended that as the attached properties were considered as 'proceeds of crime', the properties were vested with the Union of India and cannot be sold.

Justice S J Kathawala then directed the ED Director to appear on May 7 and give a clarification on the matter. He also asked the Chairman of FMC, Ramesh Abhishek, to be present.

Meanwhile, three names were suggested by ED to head the committee set up to address the grievances of the investors. ED also submitted to the High court, the recommendations on the powers and functions of the committee.