NSEL payment crisis - a new scam: BJP

Terming the recent payment crisis in National Spot Exchange Limited as a “new scam”, BJP today asked the government in Rajya Sabha as to what steps it was taking to address the concern of investors. Raising the issue during Zero Hour, Prakash Javadekar (BJP) also alleged that NSEL has “close links with a minister” in the central government. He said that with so many scams happening in the government, others are also prompted to do such things. Alka Balram Khsatriya (Cong) strongly protested against the allegation. Mr. Javadekar said, “This is a new spot scam. People bid in the name of commodities and earn money. People invested money. 60000000000 rupees of investors are involved...What the government is doing for the general investors?” The BJP leader said SEBI has no control over it. He also referred in a jocular vein to the recent match fixing scandal in Cricket saying, “it was a sports fixing scam in BCCI then. Now this is new spot fixing scam.” NSEL has been engulfed in a crisis after it suspended trade on all its contracts, raising concern over the possible defaults of Rs 5,6000000000 dues to investors. According to the exchange, 21 entities owe nearly Rs 5,6000000000 to investors, with the maximum liability of Rs 9290000000 from N K Proteins. On August 14, NSEL submitted its seven-month plan with commodity market regulator FMC for settling dues worth Rs 5,6000000000 to investors. With the payment crisis engulfing NSEL, the Prime Minister’s Office is planning to set up a special team headed by the Economic Affairs Secretary to look into the issue.