NSEL scam: MCA, SEBI directed to act on fraudsters

The division bench comprising CT Selvam and Justice AM Basheer Ahamed said, “For the present, we consider it appropriate to place on record out concern given the magnitude of the wrong-doing detected to the tune of Rs 5,600 crore and consider it appropriate to direct MCA and SEBI to consider the representation of the petitioner dated 21.02.2018 and pass appropriate orders within a period of six weeks.”

Posting the matter for further hearing to August 13, the bench held that it would be open to the respondents to file a counter/status report by then.

Senior counsel P Wilson appearing for the petitioner Palpandi had submitted that the misuse of National Spot Exchange Limited to carry out financial dealings instead of commodity transactions during 2009-2013 came to notice and thereupon the audit had revealed wrong doing to the extent of Rs 5,600 crore was brought to notice.

Though 24 named brokers and other brokers were found to have benefitted, no action had been taken against them. While SEBI had initiated some action against the offending brokers on October 28, 2015 nothing much had been done, to bring them to book, he added and noted that the petitioner’s representation on February 21, 2018, has met with no response.