GeM crosses Rs 4 Lakh Crore in GMV (See 'Corp Brief') Constitution of India - Where more than one interpretation can be given to Court's order, then benefit has to be given to party against whom contempt is alleged: HC (See 'Legal Desk') Defence Secretary visits Coast Guard facilities in North West Region (See 'Corp Brief') SEBI Act - Merely attending board meetings cannot lead to conclusion that appellant is involved in day to day affairs of Company: SAT (See 'Legal Desk') Competition Act - Grievances of Informants like payment of maintenance and electricity charges is in nature of contractual issue and disputes not having any Competition concern: CCI (See 'Legal Desk') India attends G20 Working Group Meeting at Brasilia (See 'Corp Brief') SEBI ICDR Regulations, 2018 - By not locking entire pre-preferential allotment shareholding of two allottees Noticee violated SEBI ICDR Regulations : SEBI (See 'Legal Desk') Arbitration Act - Serving officer of respondent shall act as arbitrator is invalid stipulation which makes it incumbent on Court to appoint independent sole arbitrator to adjudicate disputes : HC (See 'Legal Desk') SEBI Act - Appellant is misleading its investors that it is registered with SEBI as investment advisor and played fraud in violation of IA Regulations : SAT (See 'Legal Desk') CCI okays subscription to CCPS B of API Holdings by MEMG LLP and 360 ONE (See 'Corp Brief') PMLA - Court will not cancel interim bail granted to respondent as interim bail is about to expire within short period of time : HC (See 'Legal Desk') CCI approves 100% acquisition of Lanco Amarkantak Power by Adani (See 'Corp Brief') CGST Act - Case does not fall under ambit of Anti-Profiteering provisions of CGST Act : CCI (See 'Legal Desk') BRO connects strategic Nimmu-Padam-Darcha road in Ladakh (See 'Corp Brief') Arbitration Act - Any party having failed to make substantive claim in arbitral proceedings, cannot seek recovery by way of interim mandatory injunction u/s 17 : HC (See 'Legal Desk') SEBI Act - Trading pattern of appellants with other noticees indicate that there is meeting of mind between appellants and other noticees : SAT (See 'Legal Desk') SARFAESI Act - Respondent shall not take any coercive steps against Petitioner prior to 15th March, 2024 provided Petitioners file appeal before DRAT on or before March 01, 2024 : HC (See 'Legal Desk') Guj Govt sets up Telecom Facilitation Centre to support stakeholders (See 'Corp Brief') SEBI Act - SEBI shall not initiate any enforcement action against Applicant for SAST violations provided representation made in settlement proceedings are subsequently not found untrue : SEBI (See 'Legal Desk') India, Bhutan ink MoUs on clean energy, agriculture & tourism (See 'Corp Brief') PMLA - Surgery of knee cannot be categorized as 'life-threatening situation' and surgery which is to be undergone by applicant is not of such nature which necessitates applicant's release on interim bail only : HC (See 'Legal Desk') NCC, NPCIL ink MoU to raise awareness on peaceful use of nuclear power (See 'Corp Brief') SEBI - Any violation committed by Company which is fraudulent in nature has to be attributed to individual acting as Director at relevant point of time : SAT (See 'Legal Desk') Golden Jubilee Celebration of KVKs held in Puducherry (See 'Corp Brief') PMLA - Court declined to grant bail to Satyendar Jain in money laundering case and also cancelled interim bail granted as there are sufficient material collected by ED to show that he is prima facie guilty of alleged offences : SC (See 'Legal Desk') 42nd IPHE Steering Committee to be hosted by EU (See 'Corp Brief') IBC - Application filed u/s 7 of code can be admitted as debt and default has been established : NCLT (See 'Legal Desk')

Govt making efforts to set up Independent Court to hear NSEL related cases

Published: Jul 24, 2016

By TIOLCORP News Service

NEW DELHI, JULY 24, 2016: THE Centre is closely monitoring the well-coordinated probe into criminal offences and default in payments to investors on the platform of National Spot Exchange Limited (NSEL). So far, 12 meetings with EoW, ED, SEBI, MCA and FIU-IND, have taken place and several decisions taken.

The key highlights of some of these decisions are:

++ A designated Judge of the City Civil Court and Additional Sessions Judge, Greater Bombay has been nominated to try various cases arising-out of the NSEL payment crisis, in addition to the other assigned matters, by giving priority to NSEL related cases. Meanwhile, efforts are being made to set-up an independent Court to hear NSEL related cases on exclusive basis;

++ The Government of Maharashtra has taken action for strengthening of EOW, Mumbai Police; augmenting the number of Designated Courts under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act); and deployment of full time Competent Authorities under the MPID Act for dealing exclusively with NSEL related work so that investors are repaid their lost investments in the contracts traded on NSEL quickly. The Government of Maharashtra was requested to expedite these measures so that the defaulters could be brought to book quickly; money could be realised from the sale of attached assets and consequently be returned to investors of NSEL, who have suffered losses in the payment crisis;

++ The Government of Maharashtra has already initiated action to auction the assets attached by EOW, Mumbai Police. So far, 831 properties worth Rs.7063 crore have been attached by EOW, Mumbai Police under MPID Act, out of which, attachment of 711 properties worth Rs. 6115 crore have been notified in the Gazette of the Government of Maharashtra. EOW, Mumbai Police was requested to expedite realisation of value of attached assets, as per the procedure, quickly;

++ Government of Maharashtra was also requested to consider appropriate action in respect of about Rs.18 crore of attached assets, lying in the accounts of Competent Authority and the Designated Court under MPID Act, so that it could be refunded to NSEL investors quickly, in accordance with the procedure laid down for the purpose.

++ Ministry of Corporate Affairs (MCA) had issued draft order for the merger / amalgamation of NSEL with Financial Technologies (India) Limited (FTIL) in public interest. Bombay High Court had granted extension of time up to 15.02.2016 to MCA for taking final view on the draft order of the amalgamation. MCA issued the final Order on 12.2.2016 for the merger of NSEL with FTIL. Bombay High Court, however, has restrained the Government from notifying the final Order dated 12.02.2016 in the Official Gazette. In the review meeting, MCA was advised to pursue the case expeditiously for effecting the merger at the earliest. Further, MCA was also advised to strongly defend the efforts of the Government to introduce management and governance changes in FTIL, which are under legal challenge in NCLT and Madras High Court.

++ ED had filed prosecution complaint before the City Civil Court and Additional Sessions Judge, Greater Bombay against NSEL and 67 other accused persons under the Prevention of Money Laundering Act (PMLA), 2002. The prosecution complaint details money trail amounting to Rs 3721.22 crore. It was advised that the ED would expedite action for completing all the procedural formalities necessary for recovery of the investment and conviction of the offenders concerned.

++ FIU-IND passed an Order on 04.11.2015 under section 13 of the PMLA imposing a penalty of Rs.1.66 crore on the NSEL for non-compliance of the Act. NSEL has gone in appeal in the PMLA Tribunal against the Order passed by Director, FIU-IND. FIU-IND was advised that action may be taken to pursue the case vigorously for realising the penalty at the earliest. FIU-IND has also issued show-cause notices to Directors of NSEL for violation of PMLA.

++ As a follow-up of an earlier decision, SEBI conducted detailed inspection of books of five brokers of the erstwhile Forward Markets Commission, whose names figure in the list of offenders received from EOW, Mumbai Police. The audit has since been completed and SEBI is examining the report. SEBI was advised to complete the examination quickly and thereafter initiate necessary action against violation / offences, if any.

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