NSEL member Mohan India agrees to pay Rs 771 cr

Crisis-ridden National Spot Exchange Ltd (NSEL) on Wednesday said its Delhi-based member Mohan India Ltd has agreed to pay to the exchange about Rs 771 crore (Rs 7.71 billion) in final settlement over the next one year.

"NSEL and one of its members Mohan India have reached an agreement, based on which, the latter has agreed to facilitate pay-in of Rs 771 crore over a period of one year as part of its financial closure/settlement obligations," the exchange said in a statement.

Mohan India will make a down payment of Rs 11 crore (Rs 110 million) and the balance will be paid over the next one year, it said. The firm's total outstanding was Rs 950 crore (Rs 9.5 billion).

"We are committed to pay-in and settle our dues over the next one year period, and I am happy that we have reached an understanding with NSEL," Mohan India Director Jagmohan Garg said.

Commenting on the development, NSEL CEO and Managing Director Saji Cherian said: "Some of the big members who have pay-in obligations are co-operating with NSEL and the various NSEL Investors' Forum (NIF) teams. This is a positive development in the recovery process post the payment crisis."

Some more members have also come forward for settlement of their dues and are at various stages of finalisation, he said adding that NSEL and NIF are committed to jointly work towards a solution to recover dues.

NIF New Delhi convenor Raja Vishvanidhi said that the agreement between NSEL and Mohan India is a "positive step to bring back investors' money".

NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore (Rs 56 billion) dues to 13,000 investors after it suspended trade on July 31 on the government direction. So far, NSEL has settled about Rs 209 crore (Rs 2.09 billion).