NK Proteins' MD Nilesh Patel, also a son-in-law of NSEL's former chairman was arrested today. The EOW of Mumbai police arrested Patel who owed Rs930 crore the NSEL
Nilesh K Patel, managing director of NK Proteins Ltd, one of the biggest defaulters of National Spot Exchange Ltd (NSEL), was arrested by the economic offences wing (EOW) of Mumbai police. NK Proteins owed Rs930 crore to the troubled NSEL.
Patel is son-in-law of politician Shankarlal Guru, who resigned as chairman of NSEL on 19th August. In the same month, NSEL filed complaint against five of its defaulting members before the investigation authorities. This includes Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, NK Proteins Ltd, Vimladevi Agrotech Ltd and Yathuri Associates.
However, Guru claimed lack of knowledge regarding his son-in-law's dealing or defaults. In a statement, NSEL Investors Forum (NIF), a representative body of investors in Spot Exchange, had said, "It clearly shows his (Guru's) complicity in the fraud and by resigning from chairmanship his involvement cannot be washed away. Guru should at least give some credit to the intelligence of investors and general public. A chairman cannot be an innocent bystander when a fraud of Rs5,500 crore is being committed and almost 20% has gone to his son-in-law. Investors are confident that the law will catch up with him sooner or later".
Speaking with PTI, Guru, who is also former member of Gujarat assembly, had said, “I understand he is my son-in-law, but if he has done the wrong thing, he should be punished for it. I have nothing to do with this. I am being associated with it as I was the board chairman".
NSEL, promoted by Jignesh Shah-headed Financial Technologies (India) Ltd (FTIL), is has failed to settle Rs5,600 crore due to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on 31st July on government direction.
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