NSEL invites bids to sell ferrochrome stock of defaulter firm

Crisis-hit National Spot Exchange Ltd (NSEL) has invited bids to sell off 14,200 tonnes of ferrochrome stock belonging to a defaulter in order to recover the balance amount of Rs 95.08 crore.

Metkore Alloys, one among 24 members who defaulted on a pay-in obligation of Rs 5,600 crore after Jignesh Shah-led NSEL shut down due to violation of government norms, owes Rs 114.28 crore.

"Bids in sealed cover are invited by NSEL for sale of 14,200 tonnes of Ferrochrome at NSEL warehouse in Andhra Pradesh," the NSEL said on its website.

Since Metkore Alloys became a defaulter in fund pay-in, NSEL has initiated process of liquidation of the ferrochrome stock to recover money and pay to the investors, it said.

The ferrochrome stock pertaining to Metkore Alloys, having been seized by the Economic Offence Wing of Mumbai Police, is lying in Srikakulam district, Andhra Pradesh, it added.

NSEL said that bidders should submit bids by May 10 that will be opened on May 12.

The successful bidder should deposit the entire amount before lifting the commodity. It should be lifted in 10 days from the date of acceptance of bid.

Bids are called from interested buyers, traders or users of Ferrochrome who may be interested in buying this commodity on "as is where is and whatever there is" basis, it added.

Besides, the NSEL has also invited application to auction the assets of two defaulters - Mohan India and Vimladevi Agrotech Ltd.

Mohan India owes Rs 600.08 crore, of which Rs 52.85 crore has been paid to the bourse, while Vimladevi Agrotech has paid only Rs 0.08 crore out of Rs 14.02 crore dues so far, the NSEL data said.

NSEL said that it has been actively pursuing recovery of outstanding dues from 24 members. While 3 members, with total liability of Rs 254.6 crore have reached a settlement with the exchange and cleared/are clearing their outstanding dues.

So far, properties worth Rs 3,790.03 crore have been attached of the defaulters.