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Kirit Somaiya Finds No/Less Stock In Two NSEL Warehouses

Kirit Somaiya has uncovered more interesting details on the NSEL borrowers. He finds that Mohan India and Tavishi Enterprises are linked (they are two borrowers that owe over 1,000 cr. together)


He writes:


Somaiya yesterday visited the warehouses of Mohan India&Tavishi Enterprises at Village Khera Kalan Delhi. The warehouses & the sugar stock announced by NSEL&FMC is bogus. Both these companies belongs to Guptas, Mr. Jag Mohan& Mr. Jai Shankar Shrivastav. One of the company was formed on 24th January 2013. Paid up capital just 1 lac. These companies have shown 3,32,000 Tonnes sugar worth Rs 1094 crores in these 6 warehouses.NSEL has handed over Rs 952 crores to them.

Shocking facts are that these godowns sizes are 20,000 square feet each i.e.maximumcapacity of storage is 50000 bags. Dr Somaiya found many of these godowns are empty.

There are more details about the individual companies.

I have a simple problem. How can two dozen borrowers, none of whom are heard of, “borrow” over 5,000 crores, and have very little capital? How can these companies become members of an exchange, without adequate collateral?

I know I’m posting too much about this, and other media houses are starting to cover this a lot more. But there has to be a logical end…

  • Niftytrader says:

    Key question is not about default ( i am pretty sure that will happen), question is whether FTIL and MCX will play any role in the liability….if not, EQ mkt will be least bothered.

  • Dhananjay Redkar says:

    They might have sold the stock to make the payments, after all Mohan India did make a payment of 25 Cr as per NSEL records 😉

  • Deepak says:

    and the management has been fired – promoter didnt want to take lead role, Management now gone – now everybody else can kiss their money goodbye while the FMC, GoI and the rest of the bureaucracy can let ‘Law take its own course’