NSEL files complaint with investigation authorities against the five defaulting members

NSEL had declared its nine members as defaulters when the last pay-in was not completed by them. As per the rules and bye-laws, the Exchange has asked these defaulting members to submit their books of accounts and hand-over all the collaterals to the Exchange.
The Exchange had appointed SGS to carry out quality and quantity inspection of the commodities lying in the warehouses and their reports are being received in stages based on the inspection being done. Amongst these nine defaulting members, the exchange has initiated case for investigation against five defaulting members who did not have adequate commodities in the warehouses, which is against the mechanism specified in the Exchange circulars.
Non-delivery of commodities or its withdrawal is a breach of faith and breach of contractual arrangements. Exchange will also take similar recourse for other defaulting members who are not cooperating. As informed earlier, the NSEL board has already initiated investigation against the management team and its ex-MD&CEO. Further development in this regard will be informed in due course.

The Five defaulters against which NSEL has filed complained are:
1. ARK IMPORTS PVT. LTD.
2. LOTUS REFINERIES PVT. LTD.
3. N K PROTEINS LTD.
4. VIMLADEVI AGROTECH LIMITED
5. YATHURI ASSOCIATES

The Four other announced defaulters are:
1. LOIL OVERSEAS FOODS LTD.
2. NCS SUGARS LIMITED
3. SPIN COT TEXTILES PVT LTD.
4. TAVISHI ENTERPRISES PVT. LTD.