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Commentary

NSEL Gets Only 81 cr. of the 174 cr. It Must Pay Out

On the eve of the first “payout” by the NSEL to its members, the other parties (“defaulters”) who agreed on a settlement program involving paying over 30 weeks, with precise amounts like Rs. 174 cr. in each week for 20 weeks, have now not even paid in their first installment properly.

Of the Rs. 174 cr. expected, only Rs. 81 cr. has been received. Some have paid less than agreed, some have agreed to pay but not paid at all. Three have paid more than they earlier agreed. There are details, defaulter wise:

NSEL Defaulters that paid

NSEL Defaulters who said they'll pay but didn't

Topworth and Aastha have paid nearly 3x what they committed in the first week, Metkore paid 1.5x. MSR Food paid in full.

No one else met their commitments. The Peon-owned Juggernaut and Tavishi (that shares addresses with Mohan India) haven’t paid at all.

There’s a whole day ahead, but this is now insane. FMC needs to take over the process immediately.

  • Dhananjay Redkar says:

    What benefit will come out of FMC taking over? It is pretty much clear that large part of stock is only paper stock and there would be very little underlying stock which can be sold to make the paybacks. And this situation is known from day 1. Giving NSEL more time is to give them time for financial jugglery and move any money which is there in the company books. The probe should not be limited to NSEL but should also cover the large brokers some of whose peons are the borrowers.

  • Aejas Lakhani says:

    Dear Mr. Shenoy,
    Have been reading your posts for a few months now. Firstly thank you for sharing your opinions on the NSEL/FTIL fiasco on a daily basis. I was considering whether you think MCX is a good buy. There never just one cockroach in the kitchen – this quote by buffet keeps lingering in my mind and prevents me from buying. Why trust this promoter group at all. Awaiting your thoughts on MCX

  • Jigam Gandhi says:

    The Payout List also mentions the name of IBMA, I guess they are not entitled for any payout, Also the same money needs to be distributed to others on pro-rata basis ?