More Players Emerge in NSEL Saga Exchange says there were borrowers behind the 24 borrowers who raised . 5,600 crore; a few deny owing money to it OUR BUREAU MUMBAI More and more actors are emerging in the National Spot Exchange drama. One of the borrowers, Metkore Alloys & Industries, it turns out, is a former GMR group company, which was sold to a Dubai-based company and renamed twice later. New information released by the exchange on Thursday shows there were borrowers behind the 24 borrowers who raised . 5,600 crore against commodities ostensibly lying in exchange-accredited warehouses across 17 states. But what makes it more intriguing is the denial by a few borrowers that they owed money to NSEL and the investors who traded on the exchange. Some of the borrowers, whose liability runs into hundreds of crores, have a paid-up capital of less than a crore. A Delhi-based property developer has taken the largest client-level exposure on crisis-ridden bourse NSEL. Mangala Shree Properties, incorporated in 1999, has borrowed . 720.01 crore through Mohan India, according to an NSEL press release on Thursday. When contacted by ET, Anil Mangla, brother of Naresh Kumar Mangla, MD, Mangla Shree Properties — that is how the company’s name is spelt on the Registrar of Companies’ website — said his brother had expired and that he was unaware of any money having been borrowed on the exchange. The RoC website shows Naresh Kumar Mangla passed away in January. Another borrower, Tavishi Enterprises, which, according to NSEL owes . 333 crore to investors, sent a legal notice to the exchange on August 26 stating that since it has not been provided any delivery of stocks till date, the exchange needs to clarify the stock position shown against it (Tavishi). Stating that it intends to settle the amount with NSEL, Tavishi’s legal advisors told NSEL to remove the company’s name from the defaulters’ list. The company, according to the RoC, has a paid-up capital of just . 89 lakh. Yet Mangla Shree, according to NSEL, has borrowed . 720 crore. It is not clear how this huge amount of funds has been utilised. According to NSEL’s press release, Mohan India’s net outstanding liability as on August 27, the date of the second weekly payout, was . 575.08 crore, implying a payin of . 144.93 crore by Mangla Shree. The client with the secondhighest exposure is Shakun Polyplasts. The Ludhiana-based company has a liability of . 653.9 crore and traded through Ark Imports, whose net liability was . 719.4 crore on August 27. Shakun Polyplasts’ MD Kailash Aggarwal resigned in January. The company has a paidup capital of just . 1.08 lakh. The client with the third-largest liability is Ahmedabad-based Tirupati Retail, which, according to information on the internet, has two partners – cousins Nimish Patel and Darshan Patel, according to market sources. Tirupati has traded through NK Proteins, of which Nimish is the CMD, and has a liability of . 634.24 crore. Darshan Patel, who has traded through NK Proteins, has a liability of . 419.30 crore. The net liability of NK Protein stands at . 969.89 crore, implying that the clients have paid back . 83.65 crore. NK Proteins’s MD Nilesh Patel is the son-in-law of Shankarlal Guru, the erstwhile chairman of NSEL.
Posted on: Fri, 30 Aug 2013 04:52:33 +0000
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