October 21, 2014 8:01 PM

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Govt orders merger of NSEL with its holding company FTIL

To ensure speedy recovery of dues for investors and others hit by 5,600-crore rupees fraud at the National Spot Exchange Ltd, the government today ordered merger of the scam-hit firm with its holding company Financial Technologies India Ltd, FTIL.The decision, which comes over a year after the payments cam broke out at NSEL in July 2013, has been taken in essential public interest as the exchange is not left with any viable, sustainable business while FTIL has necessary resources to facilitate speedy recovery of dues.The move to merge NSEL with FTIL, possibly the first major government intervention in a scam-hit private sector entity since the Satyam case in 2009.NSEL was set up as an electronic exchange for spot trading in agriculture and food commodities by Jignesh Shah-led Financial Technology Group. Financial Technologies (India) Ltd is the holding company of this group, which had also set up commodity bourse MCX and stock exchange MCX-SX, among other exchange ventures.Meanwhile Mumbai Police on Tuesday arrested two top honchos of different defaulting companies, which collectively owe over 1,000 crore rupees to the crisis-hit NSEL. Gagan Suri, one of the directors of Yathuri Associates, was apprehended from Chandigarh, while Ranjeev Agarwal, promoter of P D Agro Processors was picked up from Karnal in Haryana in connection with the NSEL scam case.The Economic Offences Wing of Mumbai Police, probing the 5,600 crore rupees NSEL scam, has so far attached movable and immovable assets worth nearly 6,000 crore rupees belonging to all the accused.

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