NSEL sends legal notice to 19 defaulters

MUMBAI: Crisis ridden commodity bourse National Spot Exchange (NSEL) on Tuesday declared 19 of its members defaulters after they failed to pay up their dues during the third weekly settlement. The exchange has started legal proceedings against these members under the Negotiable Instruments Act. There were in all 24 members who were to pay a total of nearly Rs 175 crore to the exchange which was to be further disbursed to those investors who were to receive money.
The exchange could pay only Rs 15.4 crore of the total amount due, a release from NSEL said. "The recovery from these defaulting members would now be through the recovery proceedings by way of sale of commodities lying in the warehouses, sale of assets offered by these members or by payments made by the defaulting members through their own resources," the release said. "Notices against 14 defaulters have been issued under Section 138 of Negotiable Instruments (NI) Act for bouncing of cheques for settlement," it said. SEL also said that the payments from these 19 defaulting members will not be in a predefined schedule and would depend on actual receipts of payments based on the above process.
"The payment of the five non-defaulting members will continue as per the schedule disclosed earlier," it said. The 14 defaulting members are Aastha Minmet, Ark Imports, Lotus Refineries, Metkore Alloys & Indusries, MSR Food Processing, N K Proteins, NCS Sugars, P D Agroprocessors, Sankhya Investments, Shree Radhey Trading, Swastik Overseas, Vimladevi Agrotech, White Water Foods and Yathuri Associates.