Zee Media Bureau/Uttkarsh Chaturvedi
New Delhi: The Economic Offence Wing (EOW) of the Mumbai police on Tuesday made a fourth arrest in the NSEL scam arresting Nilesh Patel, the Managing Director of NK Proteins, one of the biggest defaulters of the beleaguered National Spot Exchange Ltd (NSEL).
Police had been questioning Nilesh Patel from Monday in regards to the Rs 5,600 crore scam.
Nilesh Patel will be produced before the magistrate Wednesday with police asking for his custody. NK proteins one of the largest defaulter in the NSEL scam with an exposure of more than 900 crores towards NSEL.
EOW Sources indicated that NK Proteins was the first to start the garb of paired contracts. Sources also pointed out that NK Proteins never had the stock in godown but kept taking contracts in order to get money. NK proteins used the money to enhance their edible oil business which they were running on the sides. More importantly they went on expanding these businesses in JVs with other companies.
NK Proteins entered a JV with Adani group in castor oil with this money which was 50-50 partnership in regards to exporting castor oil.
According to EOW sources NK Proteins had originally borrowed Rs 350 crores from NSEL. The company had to return the amount of Rs 570 crores in returns. On late payment NSEL had put an additional interest of Rs 85 lakhs per day which ended up being around 900 crores plus.
On Wednesday courts will also produce Amit Mukherjee and Jai Bhaukhande for their remand application.
However, police will not be asking for a remand extension as they have already have utilised 14 days of custody for both of them.
