Subject: RE: Modern India Limited & Ors | Committee Meeting Dear All The committee meeting was scheduled @ 11:00 am at World Trade Center One, Cuff Parade for the full day. All the 3 (three) Committee members i.e. Justice Daga (Retired), Mr Solomon and Mr Yogesh Thar (collectively referred as “Committee”) were present at the meeting. Further, the following people also attended the meeting: a. Mr Ameet Naik and Ms Anuja Jhunjhunwala for Naik Naik & Co; b. Counsel Mr Akshay Patil and few others for F&R; c. Mr Bhushan Shah and Ms Namrata Shah for MHCO; d. Mr Avinash Avhad – Prosecutor and Inspector Ramchandra Rothikar & few others from EOW; e. Advocate Vijendra Mishra for MSR f. Mr Singh in person for Namdari Group g. An advocate appeared for LOIL h. Officer from MPID; i. Investors from various forums. The Committee in past meeting has issued summons to all the 24 (twenty-four) defaulters to appear before them. Out of 24 (twenty-four) summons, the following 4 (four) defaulters hearing was listed today: 1. ARK Imports Pvt Ltd (“ARK”) 2. MSR Food Processing (“MSR”) 3. Namdari Food International Pvt Ltd and Namdhari Rice & General Mills (“Namdar Group”) 4. LOIL Continental Foods Ltd , LOIL Health Foods Ltd and LOIL Overseas Foods Ltd (“LOIL Group”) The key issues and arguments during the Committee proceedings are enumerated as under: 1. MSR case 1.1. NSEL submitted the compilation of documents to the Committee on MSR case. 1.2. Mr Mishra who appeared for MSR requested an adjournment as the client was hospitalized and hence he was unable to take the appropriate instructions. 1.3. Mr Naik informed the Committee that the admitted liability is Rs.11.31 crores, the amount paid upto 21 November 2014 is Rs. 1.23 crores the balance amount is of Rs. 8.82 crores. He also stated that the warehouse is sealed by EOW. 1.4. Justice Daga enquired about the paddy which is still lying in the warehouse if they are sufficient enough to recover the money of the total default amount and also if Mr M. Sampathroa has been granted bail. 1.5. Mr Rothikar informed that Mr Sampathroa is been absconding and hence they were unable to contact him. Mr Daga directed EOW to take the details of the hospital and contact him personally and to make him appear on the next hearing. In view of the aforesaid , the Committee directed EOW that : 1.5.1. Valuation of the warehouse to be submitted; 1.5.2. Size of the warehouse; 1.5.3. The quantity of paddy remaining in the warehouse. 1.6. This matter is now posted on 22December 2014 for hearing. 2. Namdari Group case 2.1. NSEL submitted the compilation of documents to the Committee on the Namdari Case. 2.2. Mr Naik submitted to the Committee that the total amount due is of Rs 63.82 crores and the amount paid is to NSEL is approximately Rs 2.41 crores till date. Mr Naik also stated that an affidavit states that an amount of Rs 94,30,766/- is lying in SBI A/c and paddy of about 18000 paddy bags worth Rs 3.25 crores is ought to be transferred to NSEL escrow account. He also stated that Mr Inder Singh Bal has given 4 demand drafts of Rs. 1.5 lakhs each in the MPID court. 2.3. Mr Daga enquired about the working condition of the factory and the paddy lying in the warehouse. Mr Singh stated that the factory is in working condition but the paddy is perishing and hence to be disposed off immediately. Mr Naik informed the Committee that the competent authority has not taken any action and hence direction to be given. The competent authority informed the Committee that they were busy with election duty and were unable to execute the orders of the MPID court. 2.4. In view of the aforesaid, Committee directed that : 2.4.1. EOW to give an undertaking that within 3 (three) days to comply with the order and transfer money from SBI account and to NSEL escrow account. 2.4.2. Competent authority to give an undertaking and proposal of the paddy disposal of about 18000 paddy bags within 1 (one) week. 2.4.3. Mr Singh to submit ledger accounts and an Affidavit stating the willingness to recover the liability 2.4.4. Mr Singh to submit the personal assests of the Driectors of the Company. 2.4.5. Mr Singh also to give a proposal with regards to the disposal of the paddy. 2.4.6. NSEL to furnish ledger accounts. 3. ARK Case 3.1. NSEL submitted the compilation of documents to the Committee on the ARK Case. No one from the ARK was present. 3.2. Mr Naik initiated by giving an overall background. However, it was discovered that the notice was not appropriately served to ARK. The Committee directed to serve the notice again and ordered them to be present at the time of next hearing. 3.3. Mr Naik emphasized that an order has been passed by MPID to defreeze the bank accounts and for sale of stocks of raw wool which is lying in the warehouse, but till date no appropriate action has been taken by the competent authority. To this, Mr Daga ordered competent authority to do discharge their duties as per the order or else the Committee will intimate their non-corporation and non-action to the Bombay High Court. 3.4. With regards to Settlement Agreement draft sent to Kailash Agarwal , Mr Daga enquired about the same to the competent authority and then it came into the light of the Committee that Mr Agarwal refused to sign the settlement agreement. He also informed that the said company is not appearing before competent authority nor before the Committee. To this Mr Daga directed the competent authority that if not ready to sign or appear, than they need to move for the cancellation of the bail application as the bail was granted on the basis to recover or sale of properties to which Mr Agarwal had no objection. 3.5. This Matter is now posted on 19 December 2014 for hearing. 4. LOIL case : 4.1. NSEL submitted the compilation of documents to the Committee on the LOIL Case. 4.2. With regards to this case, Mr Naik informed the Committee that NSEL has filed miscellaneous applications for defreezing the 7 accounts of LOIL Group freezed by EOW and to transfer the amount to NSEL escrow account of amount approximately Rs. 1 crore and 18 Lakhs and the application is pending. 4.3. He also stated that all the 3 (three) LOIL Group have filed their reply stating various suits have been filed in the courts at Fatehgarh sahib and have stayed the operation of attachment by EOW. It is also submitted that MPID has no jurisdiction and hence matter is pending. 4.4. The Committee was of the view that since the Punjab courts have passed several orders, it will be appropriate for NSEL to procure a consent from the Punjab courts for allowing the Committee to ascertain the claim. Mr Naik agreed to the suggestion and informed them that they will take the needful action. 4.5. After the aforesaid discussion, advocate for LOIL appeared. He submitted the letter to committee which was not served to us. Advocate informed the Committee that they will be appealing before the Bombay High Court. We will be procuring this letter shortly and update you the same. Mr Bhushan Shah requested the Committee to give the details of the money trails with EOW/MPID. The Committee informed that EOW is still conducting forensic audit. The informed that EOW will be sharing interim report shortly. The meeting was concluded and the next hearing for the other last set of defaulters is scheduled tomorrow i.e. 4 December 2014 at 11:00 am This email is for your record and information. Regards sanjay Desai 13:05 (16 minutes ago) to amitsaraf21, Ritesh, vision Kindly post
Posted on: Thu, 04 Dec 2014 07:52:31 +0000