ED attaches properties worth ₹115.86 cr in NSEL fraud case

MUMBAI: The Enforcement Directorate (ED) has provisionally attached immovable assets worth ₹115.86 crore in connection with the ₹5,600-crore National Spot Exchange Limited (NSEL) fraud case. The assets, attached by the agency’s Mumbai zonal office on March 31, include 15 immovable properties in Mumbai, Delhi and Rajasthan, owned by various defaulters of NSEL such as Mohan India Group, Vimladevi Agrotech Ltd, Yathuri Associates and Lotus Refineries.

The ED initiated the probe under provisions of the Prevention of Money Laundering Act (PMLA), 2002, based on an FIR registered in Mumbai. The probe revealed that the accused hatched a criminal conspiracy to defraud investors, induced them to trade on the NSEL platform, created forged documents like bogus warehouse receipts, falsified accounts and thereby committed criminal breach of trust, defrauding investors of ₹5,600 crore, said sources in the agency.

Genuine investors were defrauded as the NSEL platform allowed sellers to trade in commodities without ensuring that goods of appropriate quantity and quality were stored in its own warehouses, the probe found. Money collected from investors was also diverted for investment in real estate, repayment of outstanding debts and other activities.

The ED has so far attached assets worth ₹3,433 crore in the case and filed seven charge sheets against NSEL, various defaulters and broking entities.