GOVERNMENT OF INDIA

MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS

LOK SABHA
UNSTARRED QUESTION NO. 3338

TO BE ANSWERED ON 5TH AUGUST, 2016

.NSEL SCAM'

3338. DR. PRABHAS KUMAR SINGH:

Will the Minister of FINANCE be pleased to state:

(a) the reason for not tracing full money trail of entire amount in National Spot Exchange Limited
(NSEL) scam cases on priority;
(b) the details of defaulters and brokers to whom the money had gone along with the sources of
the money;

(c) whether there are pians to attach accounts and properties of the defaulters and if so, the details
thereof; and

(d) whether any action is taken against bungling ofthe funds, if so, the details thereof and if not,
the reasons therefor?

ANSWER

Minister of State in the Ministrv of Finance

SHRJ ARJUN RAM MEGITWAL

(a) The Directorate of Enforcement is conducting investigations under the provisions

of
Prevention of Money Laundering Act,2002 (PMLA) in the payment and settlement crisis case
of National Spot Exchange Limited (NSEL).
The Govemment of Maharashtra had appointed two Forensic Auditors viz. IWs Chetan Dalal
Investigation & Management Services and IvI/s US Gandhi & Co. by issuing notifrcation
dated 28.09.2015 in order to assist the Economic Offences Wing of Mumbai police in the
investigation of NSEL payment and settlement crisis case. These two forensic auditors
initially rendered their assistaace in the investigation and prepared money trail of some of the
accused borrowers. However, owing to pending issue of remuneration they have paused their
audit work. A proposal to disburse their remuneration from the auction proceeds in this case
has been submitted in the MPID Court. The Investors' organisations have submitted their no
objection to the Court for the disbursal of amount from the auction proceeds. Money trail in
the NSEL case is expected to be compieted after the proposal is approved.

(b) The details of defaulters and brokers to whom money had gone are as at Arnexure-I. The
entire amount which is gone to the defaulters and brokers belong to about 13000 investors.
(c) The Govemment of Maharashtra h,o i<Qrad 6wv Ea-as{.rr norlftriotions rn respEut of tl.r
attachment ofproperties and bank as well as Demat accounts of the accused persons under the
provisions of Maharashtra Protection of Interest of Depositors (In Financial Establishments)
Act,7999 (MPID Act) in this case. The total value of such attached properties is Rs. 6064
crore.

Further, assets worth Rs. 836.98 crores have been attached by the Directorate of Enforcement
under PMLA. There are plans to attach more properties identified as proceeds of crime.
(d) During the course of investigation by the Economic offences wing of Mumbai police (Eow),
31 accused persons have been arrested by EoW. Out of these accused, 6 are key management
persons ofNSEL, 3 are brokers and 22 ue borrowers. Three charge sheets have been filed in
the Court of Hon'ble Special Judge under MPID Act, Cify Civil and Sessions Court, Mumbai.
Further investigation by EoW is still in progress.

In addition, a prosecution complaint has been filed on 30.03.2015 under PMLA before the
Special PMLA Court, Mumbai against NSEL and 67 others.
*** :f :l(
 Pro rties identified & edb E OW Which were u sh din t zette
tlo of attadpd ?rogerty Vehidcs Vehlccls Tol,,l Arnt
sr, Namc of Company Dcfault No of B.nk Btnt 5hare
V.luation Sahed - v.lua (tn CtJ depo.ited
ts, Anrount A/B Ealancc lnvestmentg Propertlcs
publlrhed ln (in c.) publi:hed ln publlshed ln . (hcr.) prlblbhed (lnc', tn

FUGtt gatett6 ' Earatte lnt ette (A+8{C+D) ssctow

( ln cr.)
(Al (c) (Dl
1 NSEL Directors I 7r 14.31
{8J
?41.b3 17 L25 III I 887.04

3
Mohan lndia hn Ltd
Erinda h^ Ltd I
600.08 2
I
I
0.47
0.13
40
r 380.00
II
II
3a0.47
0.13
033
54.70

0.00
4 avi5hi Ente A,t- ttd.
Tot l of 2+3{
333-O1
933.(x) 4
0.33
0,92 I 40 380.00 I
I
I 3m.92 9.70

5 IM
Pln
10.7s
s3-07
4
4
I-
I 24 43.55
I II 43.55
0.35
z.o5
n o-oo

r-
6 Na I I
424.4 I o.so 418.50 4r4.56 25.M

II
7 Yathu 5 l 19
24.17 o.08
tz 21-tO
8 14.02
38.26
9 0.o1
0.01 11 95.@ I 95-01 1.63
9 Textiles Bn 2
T - 2U.75 '1.85

II-
58.85 2 o-oo 45 234.75
10 NC5 79.45
159.@ 169.44
11 od Ltd 114.28 3 -
o.44 20
97 644.65 w.79 o.22
-
0.14
7Z
13 N K Protines
719.42
969.89 I
23
I
fl"oo- I-
0,00 v 781.00
147.m T
L4 1.05 782.05
747 -@
35.4
1.30
14 Foods 85.12 2 - 26
53 74.4t II 74.U 72.L8 _
15 s\rrdstik 102.98 3 o.03
EIE Pvt :5.2,55
a4,ss
27 L4.27 -
-
32
70
10o.69
601.S0
5
2
0.15
0_4
115.11
601.90
0.08
13.35
17 ?D
I8 L
2
1
0.00
0.00 II 2
7Z
600.00
12O1.50 III o
600.00
1201.90 13.35

19
Total of 17+18
lnd. IC
1.55 3
1
0.00
0.05
-
- 1
17
33,02
-I
II
33.O7 I 8.50
20 LOIL Co
2r LOIL H
- 356-21
294.44 2
z r.03
0.01 - 7.87 0 II
II
477.90 529.{4
7.00
1.08
22
123 Lrxmi e
LOIL Ove
-
85.19 2 0.09 42,54
s8 II
t- srdst- II
f- Total of 19+20+21+22+23 -- 736.88 7
r
1.18 -
-
50.41 86
I
s62.51
51.61
16.s8
0.86
@ 0.11 25 51.S0

a
?A
2E Aistha Minmet lndia Pvt.
fradl Co
Lld-
35.34
26.47
6 5.90 -I 50 185.33 191.23
3.92
1.00
26 tttoo-6rtt| g.^l.a+< t tA 220.2
I 4.92
Total of 25+26
27 MSR Food orocessins Ltd.
2A SAN(HYA INVESTMENTS
246.67
10.05
7.74
E
6
F]
5.90
0,o0 n- 50
,A
oefault
185.33
rTt'til
frll I I
191.23
rrriir
tro 1.23
7.2!

I:o
29 roPwoRtH srEEts & Po\,vEE-e.Ud-
N 4 ot I
188.01
f14
37.53 799
It
7L7
nt

s224.90
rlze E ITIn
2.70 6064.11
I
175.2S

379.80
I
Total (ln Cr. 5647.L7 196
-
-