HC calls FMC, ED heads on 7 May to decide on NSEL assets sale
2 May 2014 5:14 AM IST
The court of Justice S A Kathawala will sit at an unusual time of 9.30 am on 7 May specially to hear the matter.
The Judge also asked the officials of Economic Offences Wing (EoW) and ED whether they had any objection if properties attached in the NSEL scam were sold and the proceeds deposited with the court. The issue cropped up in a case filed by Mohan India, an NSEL investor.
The court suggested selling of the attached properties and giving the money to investors. ‘Why you are raising technical objection? The property was purchased from the investors' money and by selling it the money should be given back to investors,’ Justice Kathawala said.
While an official of EoW said he had no objection, the deputy director of ED said the settlement would have to be done as per the Prevention of Money Laundering Act.
The ED official also contended that as the attached properties were considered as 'proceeds of crime', the properties were vested with the Union of India and cannot be sold.
Justice S J Kathawala then directed the ED Director to appear on 7 May and give a clarification on the matter. He also asked the Chairman of FMC, Ramesh Abhishek, to be present.
Meanwhile, Commodity markets regulator FMC will meet on 6 May to decide the next course of action against MCX as the deadline for complying with its order to ensure that erstwhile promoter FTIL reduces its stake in the bourse expires today.
‘The commission will meet on 6 May to take a view and decision on the compliance status of MCX on implementation of the ‘fit and proper’ order against FTIL and actions taken on the (PwC) audit report of MCX,’ Forward Markets Commission Chairman Ramesh Abhishek said.
The FMC had warned MCX that it would not renew contracts, allow new contracts and eventually take away the licence to run the bourse if the commodity exchange does not comply with regulatory norms.
The FMC, which went into the running of group company National Spot Exchange Ltd following a Rs 5,500 crore payment crisis, had issued an order in December declaring Financial Technologies India Ltd (FTIL) ‘not fit and proper’ to hold more than a 2 per cent stake in Multi Commodity Exchange.
The FMC also asked MCX to take concrete steps towards this direction and gave it a deadline till Wednesday to ensure FTIL pares its stake to 2 per cent from the current 26 per cent in the commodity bourse.
The Judge also asked the officials of Economic Offences Wing (EoW) and ED whether they had any objection if properties attached in the NSEL scam were sold and the proceeds deposited with the court. The issue cropped up in a case filed by Mohan India, an NSEL investor.
The court suggested selling of the attached properties and giving the money to investors. ‘Why you are raising technical objection? The property was purchased from the investors' money and by selling it the money should be given back to investors,’ Justice Kathawala said.
While an official of EoW said he had no objection, the deputy director of ED said the settlement would have to be done as per the Prevention of Money Laundering Act.
The ED official also contended that as the attached properties were considered as 'proceeds of crime', the properties were vested with the Union of India and cannot be sold.
Justice S J Kathawala then directed the ED Director to appear on 7 May and give a clarification on the matter. He also asked the Chairman of FMC, Ramesh Abhishek, to be present.
Meanwhile, Commodity markets regulator FMC will meet on 6 May to decide the next course of action against MCX as the deadline for complying with its order to ensure that erstwhile promoter FTIL reduces its stake in the bourse expires today.
‘The commission will meet on 6 May to take a view and decision on the compliance status of MCX on implementation of the ‘fit and proper’ order against FTIL and actions taken on the (PwC) audit report of MCX,’ Forward Markets Commission Chairman Ramesh Abhishek said.
The FMC had warned MCX that it would not renew contracts, allow new contracts and eventually take away the licence to run the bourse if the commodity exchange does not comply with regulatory norms.
The FMC, which went into the running of group company National Spot Exchange Ltd following a Rs 5,500 crore payment crisis, had issued an order in December declaring Financial Technologies India Ltd (FTIL) ‘not fit and proper’ to hold more than a 2 per cent stake in Multi Commodity Exchange.
The FMC also asked MCX to take concrete steps towards this direction and gave it a deadline till Wednesday to ensure FTIL pares its stake to 2 per cent from the current 26 per cent in the commodity bourse.
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