Uttkarsh Chaturvedi/Tarun Sharma
New Delhi: During the hearing of petitions on E-series contracts of NSEL and two PILs, Bombay high courts has slammed FMC, Union Govt, and Ministry Of Consumer Affairs over ambiguity on regulatory authority of NSEL.
The High court has asked all three of them to submit a reply by Friday on who holds the regulatory authorities over NSEL. The court has expressed concern over the fact that after 2 weeks of court proceedings it is still unclear over the regulatory authority. Bombay high court raised the question when FMC in its reply to the court stated that they don't have the power to enforce the repayment of the money but only the power to supervise it.
The Economic Offence Wing (EOW) also has submitted its affidavit in the court regarding its process in the NSEL Fiasco so far. EOW has stated that they have made three arrests in the case so far and has also implied MPID act in the case post which they will soon start freezing the assets of NSEL, Group companies, promoters and directors of NSEL.
Regarding the E-series contracts, court maintained its decision that no e-series redemptions can happen before 25th of October and it has to be cleared by FMC 7 days before the process takes place. However the investor counsel argues that there are signs of intermingling of funds within NSEL, and it needs to be made sure that the funds of investors of paired contracts should not go e-series investors.
Anjani Sinha, former MD and CEO of NSEL is in custody of Mumbai police EOW wing and it is expected that Jignesh Shah and other promoters and directors of the company are expected to be called by EOW for questioning.
