NSEL to liquidate assets of Mohan India & Vimladevi Agrotech

Crisis-hit NSEL has decided to liquidate assets of two defaulters - Mohan India Group and Vimladevi Agrotech, who together owe around Rs 913 crore.

The development comes following the order issued in August 2013 by the regulator FMC, which is monitoring recovery of dues of about Rs 5,600 crore at National Spot Exchange Ltd (NSEL).

"To accelerate recovery, NSEL has started the process of liquidation of attached assets of defaulting borrowers. As a first step, assets of Mohan India Group and Vimladevi Agrotech will be liquidated to recover dues," an NSEL official said.

The NSEL has invoked the 'default clauses' agreed upon with defaulters Mohan India Group and Vimla Devi Agrotech in the settlement agreement signed recently, the official said.

The crisis-hit exchange has initiated the liquidation process to ensure that the recovery process did not reach a stalemate, the official added.

Mohan India Group, one of the biggest defaulters in the NSEL payment crisis, has a total outstanding of Rs 922 crore. It had agreed to settle Rs 771 crore and could pay only Rs 23.9 crore till date.

NSEL has decided to liquidate Mohan India's properties in Civil Lines in Delhi and Bikaner in Rajasthan. "Besides, NSEL has also written to the Income Tax Department in Delhi to release Rs 59 crore from Mohan India as per the MPID court order dated January 8th, 2014," the NSEL official said.

As for Vimladevi Agrotech Limited, as against a total outstanding of Rs 14.02 crore, the company has so far paid only Rs 8,00,000 leaving a balance amount of Rs 13.94 crore.

To recover the dues, NSEL will be liquidating the company's soya bean plant in Kota worth around Rs 14 crore, the official added.

NSEL suspended trade in July last year after two dozen counterparties declared their inability to settle payments amounting to Rs 5,600 crore to more than 13,000 investors.

As on January 28, NSEL has settled Rs 308.33 crore.


  • Modi must clearly say that preservation of cows is not about manslaughter

    Instead of in-fighting between hindus and muslims, India should fight poverty and maintain its values of diversity and tolerance, as advised by Presid


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Urs Schoettli

America lacks will to contain China

Recently both the Chinese leader Xi Jinping and Indian prime ...

Zehra Naqvi

Exercise gets creative juices flowing

Ever known that feeling of being sluggish and drowsy, of ...

Bubbles Sabharwal

You are what you believe yourself to be

The Gita says a man is what his shraddha is. ...


William D. Green

Chairman & CEO, Accenture