The NSEL’s defaulter companies diverted funds towards payment of their loans and investment in real estate, said the complaint filed by the Enforcement Directorate (ED) last year.
The complaint stated that the NSEL’s borrowers and trading members diverted the money collected from investors to activities such as life investments and repayment of outstanding debts.
The agency’s complaint detailed how the defaulting members siphoned funds to other companies to expand their businesses.
According to the complaint, PD Agroprocessors Pvt Ltd, which paid the NSEL around Rs 420.40 crores, diverted Rs 38.32 crores to the repayment of loans. It diverted Rs 201.28 crores to the personal accounts of its directors and its other companies. The company diverted Rs 37.51 crores towards investment in real estate.
The complaint said M/S Dunar Foods Ltd, one of PD Agropocessors’s companies, received Rs 282.93 crores, of which Rs 118.65 crores were used to repay loans.
Aastha Minmet India Lit and M/s Juggernaut project Ltd, defaulter companies which failed to pay Rs 186.22 crores, had diverted around Rs 29.49 crores into real estate, including the financing of the township project in Thane.
Mohan India Pvt Ltd, the NSEL’s biggest defaulter, allegedly invested Rs 187 crores in the real estate projects of its sister companies. The agency said the company, accused of defaulting Rs 843.53 crores had diverted around Rs 151 crores to the purchase of a plot in Delhi. It diverted Rs 24.92 crores into four more real estate projects. Rs 74.80 crores were invested in nine properties purchased in the name of another company.
NK Proteins, owned by the son-in-law of the NSEL’s chairman, Shankarlal Guru, allegedly diverted large sums into the purchase of properties in other businesses, and joint ventures.