Lok Sabha Question No. 3338 (UNSTARRED), answered on 2016-08-05
Subject: NSEL Scam
Ministry: FINANCE
Asked by: PRABHAS KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED  QUESTION  NO. 3338

## TO BE ANSWERED ON 5TH AUGUST, 2016

## .NSEL  SCAM'

## 3338. DR. PRABHAS  KUMAR SINGH:

## Will the Minister of FINANCE  be pleased  to state:

- (a) the reason for not tracing  full money  trail of entire  amount  in National  Spot  Exchange Limited (NSEL) scam cases on priority;
- (b) the details of defaulters  and brokers  to whom the money  had gone along with the sources  of the money;
- (c) whether  there are pians to attach accounts and properties  of the defaulters  and if so, the details thereof;  and
- (d) whether any action is taken  against bungling  ofthe funds,  if so, the details  thereof and if not, the reasons therefor?

## ANSWER

## Minister  of State in the Ministrv of Finance

## SHRJ ARJUN RAM MEGITWAL

- (a) The Directorate of Enforcement  is conducting  investigations  under the provisions  of Prevention  of Money Laundering Act,2002  (PMLA) in the payment and settlement crisis case of National  Spot Exchange Limited (NSEL).

The Govemment of Maharashtra  had appointed  two Forensic  Auditors viz. IWs Chetan Dalal Investigation  & Management  Services and IvI/s US Gandhi & Co. by issuing  notifrcation dated 28.09.2015 in order to assist the Economic  Offences Wing of Mumbai  police  in the investigation  of NSEL payment and settlement  crisis case. These two forensic  auditors initially  rendered their  assistaace  in the investigation  and prepared money  trail of some of the accused  borrowers. However, owing  to pending  issue  of remuneration they have paused  their audit work. A proposal to disburse their remuneration  from the auction proceeds in this case has been submitted in the MPID Court. The Investors'  organisations  have submitted  their no objection  to the Court for the disbursal of amount from the auction proceeds. Money trail in the NSEL case is expected to be compieted  after the proposal  is approved.

- (b) The details  of defaulters and brokers to whom money had gone are as at Arnexure-I. The entire  amount which  is gone  to the defaulters and brokers belong  to about 13000  investors.
- (c) The Govemment of Maharashtra h,o i<Qrad  6wv Ea-as{.rr  norlftriotions  rn respEut  of  tl.r€ attachment ofproperties and bank as well as Demat accounts of the accused persons  under the provisions  of Maharashtra  Protection of Interest of Depositors (In Financial  Establishments) Act,7999 (MPID Act) in this case. The total value  of such attached  properties is Rs. 6064 crore.

Further, assets worth Rs. 836.98 crores have been attached  by the Directorate of Enforcement under PMLA.  There are plans to attach more properties  identified as proceeds of crime.

- (d) During the course of investigation by the Economic offences  wing of Mumbai  police  (Eow), 31 accused persons  have been arrested  by EoW. Out of these accused,  6 are key management persons ofNSEL, 3 are brokers and 22 ue borrowers. Three charge sheets have been filed in the Court of Hon'ble Special Judge under MPID Act, Cify Civil and Sessions  Court, Mumbai. Further  investigation by EoW is still in progress.

In addition, a prosecution complaint has been filed on 30.03.2015 under PMLA before the Special PMLA  Court, Mumbai  against NSEL and 67 others.

* * *  :f :l(

I

| Pro rties identified & edb EOW Which were u sh din t zette    | Pro rties identified & edb EOW Which were u sh din t zette    | Pro rties identified & edb EOW Which were u sh din t zette    | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   | Pro rties identified & edb EOW Which were u sh din t zette   |
|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| sr, ts,                                                       | Namc of Company                                               | Dcfault Anrount                                               | No of B.nk A/B publlrhed ln FUGtt€                           | (Al Btnt Ealancc (in c.)                                     | 5hare lnvestmentg publi:hed ln gatett6 ( ln cr.) {8J         | tlo of attadpd Propertlcs publlshed ln . ' Earatte           | (c) ?rogerty V.luation (hcr.)                                | Vehidcs Sahed - prlblbhed lnt ette                           | (Dl Vehlccls v.lua (lnc',                                    | (A+8{C+D) Tol,,l (tn CtJ                                     | Arnt depo.ited tn €ssctow                                    |
| 1 NSEL Directors I                                            | 1 NSEL Directors I                                            | 1 NSEL Directors I                                            | 7r                                                           | 14.31                                                        | ?41.b3                                                       | 17                                                           | L25                                                          | I                                                            | I                                                            | 887.04                                                       |                                                              |
| Mohan lndia hn Ltd I 600.08                                   | Mohan lndia hn Ltd I 600.08                                   | Mohan lndia hn Ltd I 600.08                                   | 2                                                            | 0.47                                                         |                                                              | 40                                                           | 380.00                                                       | II II                                                        |                                                              | 3a0.47                                                       | 54.70                                                        |
| 3 h^ Ltd Erinda                                               | 3 h^ Ltd Erinda                                               | 3 h^ Ltd Erinda                                               | I                                                            | 0.13                                                         |                                                              |                                                              | r                                                            |                                                              |                                                              | 0.13                                                         |                                                              |
|                                                               |                                                               |                                                               | I                                                            | 0.33                                                         |                                                              |                                                              |                                                              | II                                                           |                                                              | 033                                                          | 0.00                                                         |
| avi5hi 4                                                      | A,t- ttd. Ente                                                | 333-O1                                                        | 4                                                            | 0,92                                                         | I                                                            | 40                                                           | 380.00                                                       | I                                                            | I                                                            | 3m.92                                                        | 9.70                                                         |
|                                                               | Tot l of 2+3{ IM                                              | 933.(x) 10.7s                                                 | 4                                                            | I-                                                           |                                                              | 24                                                           | 43.55                                                        | I                                                            |                                                              | 43.55                                                        | 0.35                                                         |
| 5 s3-07 n I Na I Pln 6                                        | 5 s3-07 n I Na I Pln 6                                        | 5 s3-07 n I Na I Pln 6                                        | 4                                                            | o-oo                                                         |                                                              |                                                              |                                                              | I                                                            | I I                                                          |                                                              | z.o5 25.M                                                    |
| 7 Yathu                                                       | 7 Yathu                                                       | 7 Yathu                                                       | 424.4 5                                                      | I I o.so l                                                   |                                                              | 19                                                           | 418.50                                                       | I                                                            | - r                                                          | 4r4.56 24.17                                                 | o.08                                                         |
| 8                                                             | 8                                                             | 8                                                             | 14.02 9                                                      | 0.o1                                                         |                                                              | tz                                                           | 21-tO                                                        | I                                                            | I                                                            | 95-01                                                        | 1.63                                                         |
| 9 Textiles Bn                                                 | 9 Textiles Bn                                                 | 9 Textiles Bn                                                 | 2 38.26                                                      | 0.01 o-oo                                                    |                                                              | 11                                                           | 95.@ 234.75                                                  |                                                              |                                                              | 2U.75                                                        | '1.85                                                        |
| 10 NC5 11 od Ltd                                              | 10 NC5 11 od Ltd                                              | 10 NC5 11 od Ltd                                              | 58.85 2                                                      |                                                              | T                                                            | 45 20                                                        | 159.@                                                        | -                                                            | I                                                            | 169.44                                                       | 79.45                                                        |
|                                                               |                                                               |                                                               | 3 114.28                                                     | o.44 0.14                                                    | -                                                            | 97                                                           |                                                              |                                                              | I                                                            | w.79                                                         | o.22                                                         |
| 7Z                                                            | 7Z                                                            | 7Z                                                            | 23 719.42 969.89 I                                           |                                                              | -                                                            | v                                                            | 644.65                                                       | L4                                                           | 1.05                                                         | 782.05                                                       | 35.4                                                         |
| N K Protines 13                                               | N K Protines 13                                               | N K Protines 13                                               |                                                              | 0,00                                                         | - I                                                          |                                                              | 781.00 147.m                                                 | T                                                            | -                                                            | 747 -@                                                       | 1.30                                                         |
| Foods 14                                                      | Foods 14                                                      | Foods 14                                                      | 2 85.12                                                      | fl"oo-                                                       | - I                                                          | 26                                                           |                                                              | II                                                           |                                                              | 74.U                                                         | 72.L8 _                                                      |
| s\rrdstik 15                                                  | s\rrdstik 15                                                  | s\rrdstik 15                                                  | 3 102.98                                                     | o.03                                                         |                                                              | 53 32                                                        | 74.4t 10o.69                                                 | 5                                                            | 0.15                                                         |                                                              | 0.08                                                         |
| IE Pvt E                                                      | IE Pvt E                                                      | IE Pvt E                                                      | 27 :5.2,55                                                   | L4.27                                                        | -                                                            |                                                              |                                                              |                                                              |                                                              | 115.11                                                       |                                                              |
| ?D 17                                                         | ?D 17                                                         | ?D 17                                                         | 2 a4,ss                                                      | 0.00                                                         | -                                                            | 70                                                           | 601.S0                                                       | 2                                                            | 0_4                                                          | 601.90                                                       | 13.35                                                        |
| I8 L                                                          | I8 L                                                          | I8 L                                                          | 1                                                            | 0.00                                                         | I                                                            | 2                                                            | 600.00                                                       | I                                                            |                                                              | 600.00                                                       |                                                              |
| Total of 17+18                                                | Total of 17+18                                                | Total of 17+18                                                | 3 1.55                                                       | 0.00                                                         | I                                                            | 7Z                                                           | 12O1.50                                                      |                                                              | o                                                            | 1201.90                                                      | 13.35                                                        |
|                                                               |                                                               |                                                               | 1                                                            | 0.05                                                         | -                                                            | 1                                                            | 33,02                                                        | II                                                           |                                                              | 33.O7                                                        | I                                                            |
| 19 lnd. IC                                                    | 19 lnd. IC                                                    | 19 lnd. IC                                                    | z 356-21                                                     | r.03                                                         | -                                                            | 17                                                           |                                                              | -I II                                                        |                                                              |                                                              | 8.50                                                         |
| 20 LOIL Co -                                                  | 20 LOIL Co -                                                  | 20 LOIL Co -                                                  | 2 294.44                                                     | - 0.01                                                       | 7.87                                                         | 0                                                            | 477.90                                                       | II                                                           |                                                              | 529.{4                                                       | 7.00                                                         |
| 2r LOIL H                                                     | 2r LOIL H                                                     | 2r LOIL H                                                     | 2 85.19                                                      | 0.09                                                         | 42,54                                                        |                                                              |                                                              | II                                                           |                                                              |                                                              | 1.08                                                         |
| 22 LOIL Ove                                                   | 22 LOIL Ove                                                   | 22 LOIL Ove                                                   | -                                                            |                                                              |                                                              | s8                                                           | t-                                                           | II                                                           |                                                              |                                                              |                                                              |
| Lrxmi e 123 f-                                                | Lrxmi e 123 f-                                                | Lrxmi e 123 f-                                                | 7 736.88 --                                                  | 1.18                                                         | 50.41                                                        | 86                                                           | srdst-                                                       | II                                                           |                                                              | s62.51                                                       | 16.s8                                                        |
| Total of 19+20+21+22+23 fradl Co                              | Total of 19+20+21+22+23 fradl Co                              | Total of 19+20+21+22+23 fradl Co                              | r 35.34                                                      | 0.11                                                         | - -                                                          | 25                                                           | 51.S0                                                        |                                                              | I                                                            | 51.61                                                        | 0.86                                                         |
| ?A 2E Aistha Minmet lndia Pvt. Lld- @ a                       | ?A 2E Aistha Minmet lndia Pvt. Lld- @ a                       | ?A 2E Aistha Minmet lndia Pvt. Lld- @ a                       | 26.47 6                                                      | 5.90                                                         | -I                                                           | 50                                                           | 185.33                                                       |                                                              |                                                              | 191.23                                                       | 3.92 1.00                                                    |
| 220.2 26 246.67 tttoo-6rtt| g.^l.a+< t tA Total of 25+26 | 220.2 26 246.67 tttoo-6rtt| g.^l.a+< t tA Total of 25+26 | 220.2 26 246.67 tttoo-6rtt| g.^l.a+< t tA Total of 25+26 | 6                                                            | 5.90                                                         |                                                              | 50                                                           | 185.33                                                       | I                                                            |                                                              | 191.23                                                       | 4.92                                                         |
| MSR Food orocessins Ltd.                                      | MSR Food orocessins Ltd.                                      | MSR Food orocessins Ltd.                                      | 10.05 E                                                      | 0,o0                                                         |                                                              | ,A                                                           | frll rTt'til                                                 |                                                              |                                                              | tro rrriir                                                   | 1.23                                                         |
| 27 2A SAN(HYA INVESTMENTS                                     | 27 2A SAN(HYA INVESTMENTS                                     | 27 2A SAN(HYA INVESTMENTS                                     | F]                                                           |                                                              |                                                              | n-                                                           |                                                              | I                                                            | I                                                            |                                                              | 7.2!                                                         |
|                                                               |                                                               |                                                               | 7.74                                                         | oefault                                                      | oefault                                                      | oefault                                                      | oefault                                                      | oefault                                                      | oefault                                                      | oefault                                                      | 175.2S                                                       |
|                                                               |                                                               |                                                               | 188.01                                                       | nt r ITI                                                     | nt r ITI                                                     | nt r ITI                                                     | nt r ITI                                                     | nt r ITI                                                     | nt r ITI                                                     | nt r ITI                                                     |                                                              |
| 29 roPwoRtH srEEts & Po\,vEE-e.Ud-                            | 29 roPwoRtH srEEts & Po\,vEE-e.Ud-                            | 29 roPwoRtH srEEts & Po\,vEE-e.Ud-                            | f14                                                          |                                                              |                                                              | I t                                                          |                                                              | E                                                            | n                                                            |                                                              | I                                                            |
| 4 N Total (ln Cr. I:o ot                                      | 4 N Total (ln Cr. I:o ot                                      | 4 N Total (ln Cr. I:o ot                                      | 196 5647.L7 I                                                | 37.53                                                        | 799                                                          | 7L7                                                          | s224.90                                                      | lze                                                          | 2.70                                                         | 6064.11                                                      | 379.80                                                       |

-

-