EOW to attach properties of Shah,Massey

MPID act,empowers the EOW to attach properties of defaulting borrowers of the firm.

Written by ENS Economic Bureau | Mumbai | Published: November 20, 2013 2:33:18 am

The Economic Offences Wing (EOW) of the Mumbai Police will soon be attaching properties of NSEL vice chairman Jignesh Shah and former director Joseph Massey under provisions of the Maharashtra Protection of Interest of Depositors (MPID) Act.

The MPID act,which was invoked in the Rs 5600 crore NSEL payment crisis last month,empowers the EOW to attach properties of defaulting borrowers of the firm and auction them off,so that the proceeds of the auction can be paid to investors.

“We will be attaching Shah and Massey’s properties within a day or two,” a senior EOW official said. The agency has already attached 166 properties belonging to directors of companies that allegedly borrowed money from the NSEL.

Meanwhile,NSEL defaulted for the 14th straight time today as it could pay only Rs 6.10 crore to investors against a scheduled payment amount of Rs 174.72 crore. With today’s pay-out,NSEL settled about Rs 226 crore against Rs 5,600 crore dues to 13,000 investors. With PTI

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