NSEL scam: Court orders auction of stock of one of the borrowers

MUMBAI: A court here has directed the competent authority formed under the Maharashtra Protection of Investors Deposits (MPID) Act to auction the stock of one of the borrowers in relation to the Rs 5,600 crore NSEL scam.

Special MPID judge D P Surana's order came during the hearing of an application filed by NSEL seeking direction to Metkore Alloys and Industries Limited and its managing director to sign the required authorisation-cum-undertaking.

The special court also said the competent authority will auction the stock of ferro-chrome, weighing about 14,243 tones.

The competent authority was also directed to deposit the sale proceeds of auction in escrow account. The auction is to be completed in two months.

MCX promoter Jignesh Shah was arrested in the case by the Economic Offences Wing and was granted bail last August. The scam came to light when NSEL (a part of the Financial Technologies Group founded by Shah) faced a payment crisis and nearly 18,000 of its investors allegedly lost millions of rupees.