The Enforcement Directorate (ED) conducted searches at 16 locations (in Mumbai, Ahmadabad, Kadi, Chandigarh, Delhi and Bengaluru) in connection with the NSEL scam on May 30.
The NSEL scam relates to a payment default at the National Spot Exchange that occurred in 2013.
The case is under investigation with the spotlight on the involvement of brokers, defaulters, investors and key decision makers.
NSEL was promoted by Financial Technologies India Ltd. (FTIL) The payment default took place when the then commodities market regulator, the Forward Markets Commission (FMC) directed NSEL to stop launching fresh contracts leading to an abrupt closure of the Exchange in July 2013.
The case was registered by ED against NSEL, FTIL and 25 defaulter companies along with its directors and brokers subsequent to registration of an FIR by Mumbai Police in the Rs 5600 Crore NSEL scam.
Based on reliable intelligence, searches were made on residences, office premises & factories of the defaulters -- M/s N K Proteins Pvt Limited promoted by Nimish Patel & Nilesh Patel, M/s Yathuri Associates promoted by Rahul Anand, M/s Aastha Minmet India Pvt Limited promoted by Mr Mohit Singhal and M/s Lotus Refineries Pvt Limited promoted by Arun Sharma.
These defaulters have a total liability of Rs 2798 crore out of total default of Rs 5600 Crore. ED has already attached assets worth Rs. 2890 crores out of Rs 5600 crore.
During these searches, documents related to hitherto, unattached properties/investments of Rs 350 crore were recovered from the premises. Besides this, 21 high-end vehicles like Audi, Mercedes, Jaguar, BMW, Range Rover, Fortuner etc and 42 heavy commercial Vehicles and Rs 17 lakh cash were also seized during searches.
Certain incriminating documents/media have also been recovered during these searches and are being analysed.