Lok Sabha Question No. 298 (UNSTARRED), answered on 2017-02-03
Subject: NSEL Scam
Ministry: FINANCE
Asked by: JAY PRAKASH NARAYAN YADAV

(a): Yes, Sir

(b): The Government of India. through regrriar review meetings, has been constantly monitoring  the action taken by the investigatirig and enforcement  agencies into the cases  of violations  of laws,  crirninal  offences  and defauit in payments to investors  on the platform of National Spot Exchange  Limited  INSEL) witlr the r.rbjectives  of the repayment of the lost money to the investors and prosecuting  the ollendcrs. Investigations and other enforcement measures  are being taken by various agencies including the Economic Offences Wing, Mumbai Police (EOW). Enforcement Directorate,  Sr:curities  and Exchange  Board  of India (SEBI),  Financial Intelligence Unit-India and Ministrl'of Corporate Affairs.

EOW has reported  that they have aitachcd  assets worth Rs. 8583.05  crores approximately  under the provisions  of the Maharashtra  Protection of Interest of Depositors

## GOVERNI\{EN'I'  OF INDIA MINISTRY  O}T TTINAN(-E DEPARTMEN ]' OF ECONOMIC AFFAIRS

## LOK SAI}HA UNSTARRED  QUESTION NO.298

ANSwERED  oN 3'd FEBRUARy.2o17

## NSEL SCAM

## t298. SHRI JAI PRAKASI{  NARAYAN  YADAV:

Will the Minister  of ITINANCE be pleased to state:

- (a) whether  the Government  is committed to help investors  in getting their rnoney trapped in National Spot Exchange Limited (NSEL)  scam;
- (b) if so, the details thereof;
- (c) whether the Government is aware that i,rrge .{umber  of investors  have invested their black money  in NSEL,  if so, the detaiis there:cif;
- (d) whether the Governmcnt proposes  tt--' ascertain that the money invcsted by the investors in NSE[. is black money,  if so. the rletails thereof;  and
- (e) whether  the Govemment proposes  to return the money of such investors  who have invested  their black mone)' in NSEI-, ii so, the details thereof?

## ANS!" ER

## MINISTER OF STAT'E IN THE MINISTRY OF FINANCE SHRI ARJLIN RAM MEGHWAL)

(in []inancial  llstablishmcnts)  Act. 1999 (\41)ll)  Act). Rs. 527.19 crorcs have becn distributed Io the investors. 60!i invcslors huring inresrell  lcss thun Rs. 2 lakhs have becn f'ully paid and 50% ol'the invcsted  amount has been distribirtcd to the investors.  who invested belrveen Rs. 2 and Rs. l0 lakhs.

(c) and (d): lnvestigations  were initiated  by the lncome Tax Departmenl  in cases of members  / brokers of NSEL  and investors with substantial amounts with a view to verifying the source of investment  and whether  the profits arising out of such investments  had been disclosed  to the lncome-tax  authorities as per law. The results  ol invesligation  were disseminated  to the  jurisdictional  Assessing  Officers for appropriate aclion. Further, information  on 12735 and 9589 traders / brokers. suspected to have claimed bogus  bad debts / violated provisions  of section 44AB of the Income-tax Act, 196l respectively were received  from NSEL in June,20l6.  This inlormation was disseminated  to field authorities for appropriate action. Disclosure of informrtion regarding specific taxpayers  is prohibited except  as provided under section  138 ofthe Income-tax  Act, 1961.

Besides.  Enlbrcement  Directorate  is investigating  into a case in the subjer:t  matter under the provisions  ol Prevention ol Monel' Larurdering Act. 2002 (PMLA).  During  the course ol invcstigations  conducted so far. ll Provisional Attachment Orders have been issued  by thc Directorate, provisionalll  attaching properties  of  lts. 1925 Crores (approximately). Thc attachment orders worth Rs. lil7.07 Crores have been conhrmed  by the Adjudicating Authority.  PMI.,A. New Delhi. Three persons have been arrested by the Directorate,  out of which one person  is still in  judicial  custody.Two Prosecution  Complaints have been filed by the Directoratc in this ma1l, i.

(e):  'lhe investigation  ol black money  does r.ot fail under the scope  of FIR of the :raid case filed by EOW. After liquidating all assets the Competent  Authority appointed  by the Governmenl of Maharashtra  proposcs to rciurn money to the investors  with the consent of Special Court under MPID Act.