NSEL Case- A New Narrative unfolds as SEBI takes stock of true culprits

The NSEL case has taken a new turn with NSEL brokers and traders being brought under investigative purview. With fresh evidence leading up to recovery suits against the likes of India Infoline Commodities, the hope of a fair probe has revived.

Delhi-based businessman Vishvanidhi Dalmia recently filed a suit against brokerage firm India Infoline Commodities claiming Rs.11.38 crore following delay in recovery of money invested in NSEL, while a similar case was filed earlier by a Mumbai-based businessman against another commodity broker claiming Rs. 9 cr.

Earlier this year, SEBI formed a committee to probe brokers’ role into the NSEL case, as there had been multiple complaints pointing to broker transgressions and horse trading, including client-code modification without consent, mis-selling and false assurances on returns. Now, all of that seems to be coming to a head as SEBI looks geared up against true culprits of the case.

Bombay High Court had also found evidences suggesting routing of black money by sister concerns and associates of the accused brokers. The probe began as incidents of conflicting investor claims and mis-quotation of PANs surfaced.

A senior investigation officer said, “”It has also been alleged that funds of sister concerns of brokers, which could have been derived from illegal sources, were used to trade on the NSEL platform with an intent to legitimize the said funds, which amounts to money laundering,”

Hopefully, this will set the tone for catching up with actual defaulters as against piling up 63,000 shareholders of FTIL with the liability of 5600Cr- an order that stands no fiscal prudence at all given that FTIL assets amount to Rs. 2000 cr.

The merger can also be deemed discriminatory under section 14 of the constitution.

It should not come as a surprise that the order faces judicial scrutiny. Though yet to be seen how events shape out, the crux of it all is that with authorities finally getting into the groove, the judiciary will now take stock of factors hitherto brushed aside.