The Bombay High Court today formally constituted a committee which will be headed by retired justice V C Daga to liquidate the assets of 22 NSEL borrowers, in the class action suit filed by Modern India against NSEL. The committee will also have a chartered accountant, Yogesh Thar and senior advocate, J S Solomon.
The case follows default by NSEL to the tune of Rs.5574 crore a year ago and 13000 investors got stuck, Modern India being one of them.
The committee will have to work in co-ordination with Forward Markets Commission (FMC). The committee can also call for records of settlements between the borrowers and NSEL before this committee was formed.
While economic offense wing of Mumbai police has attached assets of all borrowers, FMC had also asked NSEL to file civil suits against all of them and in Modern India case high court is also active in taking measures to recover money from borrowers and the Dga committee will do the same.
Justice SC Gupta, today issued an order which said that the committee will have to seek permission from court to gain access to the assets which have been attached by the Economic Offences Wing (EoW) of Mumbai Police and when the committee wants to distribute money it will need to prepare a report and send it to Forward Markets Commission with the court’s permission.
Also, the committee us empowered to ascertain the outstanding liability of the borrowers and can carry out forensic audit on those companies. The court also said that before any settlement is made between the borrowers and NSEL it will have to give notice to FMC and court and the committee’s decision can be challenged in court.