HC directs NSEL defaulter Mohan India to disclose assets in 4 weeks

MUMBAI: Investors hit by the Rs 5,600-crore NSEL scam can cheer as the Bombay High Court has directed one of the largest defaulters on the bourse, Mohan India Group, to disclose its moveable and immoveable assets within four weeks from Tuesday and not to deal with the assets until the court gives a decision on a suit filed by NSEL against the defaulters.

NSEL filed suits against the Mohan India Group after a conciliation agreement between the two failed. The agreement involved Mohan India paying around Rs 770 crore to the exchange for aggrieved counterparties on the bourse from whom it raised money against sugar stocks, which were later found non-existent.

If Mohan India and Tavishi wish to deal with the assets, like alienating them, they will have to furnish bank guarantees within four weeks from Tuesday.

Accordingly, Mohan India will have to furnish a bank guarantee worthRs 690.82 crore valid for five years and Tavishi for Rs 347.02 crore in favour of the HC. They will also have to pay interest at 18% from the date of filing of the suit till the bank guarantee is furnished.

The defendant, Mohan India Group, has also been given four weeks for filing a rejoinder or reply in the HC along with providing affidavit of disclosure of assets. Naik Naik & Co and Virag Tulzapurkar appeared for NSEL.

The court has appointed a three-member committee to ascertain dues payable by defaulters.

NSEL in a public notice earlier this year said the outstanding default amount from Mohan India was Rs 879.24 crore as on May 26, 2014. The NSEL scam refers to 25 counterparties having defaulted in paying Rs 5,600 crore to over 13,000 investors after it was discovered in July last year that the collateral against which they raised the funds was virtually non-existent.