A week after the MPID (Maharashtra Protection of Interest of Depositors) court approved the bonafide settlement plan submitted by Delhi-based Mohan India, one of the biggest defaulters in the R5,575 crore National Spot Exchange scam, concerns have emerged around its feasibility.
Sources indicate there are various issues over the plan that need clarity. The primary concern appears to be the basis on which the settlement amount of R771 crore has been been arrived at as there are questions regarding the payment of the remaining dues of Mohan India to NSEL. Mohan India owes close to R910 crore to NSEL.
Some concerns have also been raised over the credibility of the collateral attached to the plan as there is no clarity on whether there are any existing encumbrances or third-party charges on the assets and properties that are part of the collateral. In addition, it is believed while the settlement is proposed to take place over a period of one year, the repayment schedule appears to be back ended, raising concerns over it’s implementation.
Last Monday, the MPID court permitted Mohan India along with its two group companies, Tavishi Enterprises and Brinda Commodity to fulfil an earlier settlement plan submitted by the company in consultation with the spot exchange. Under that plan Mohan India had proposed to pay R771 crore, including a down payment of R11 crore, and the rest of the amount in 13 tranches over the period of next one year.
The MPID court has guided three of the Mohan India companies and NSEL to submit a monthly report on the settlement developments to the court and Economic Offences Wing (EoW) of the Mumbai Police on the third day of the succeeding month. It also allowed EOW to notify the court in case of any under valued transaction.
Meanwhile, EoW officials on Monday said they have sent notices to 148 brokers in connection with the NSEL scam. The brokers have been told to give details of their total exposure including, a break-up of clients’ money involved and their own funding. Officials also said these brokers would be asked to furnish their book of accounts. After investigating their books, brokers may be summoned to explain any irregularities found.