NSEL scam: Will take steps to attach IIFL properties, Maharashtra tells Bombay High Court

The Maharashtra government recently told the Bombay High Court that it will a issue notification for attachment of properties of IIFL Commodities Ltd (erstwhile India Infoline Commodities Ltd) in relation to the National Spot Exchange payment default case. [Vishvanidhi Dalmia v. State of Maharashtra & Anr].The Principal Secretary of the Home Department was summoned by a Bench of Justices Revati Mohite Dere and Manjusha Deshpande on March 12. The Bench observed that the State government had failed to highlight in its affidavit the steps it will be take in furtherance of the previous orders of the Court with respect to the properties of IIFL Commodities. .Accordingly, Principal Secretary Anoop Kumar Singh assured the Court that the State will take action without waiting for the outcome of the final decision in the petition. "Anoop Kumar Singh, Principal Secretary, Home Department, is present before this Court. He assures us that without waiting for the outcome of the final decision in the aforesaid petition, as stated in para 5 of the affidavit, the State by following due process of law, will issue notification for attachment of the conerned properties of IIFL, within four weeks from today. Statement accepted," the Court recorded in its order. .The attachment of properties will follow the investigation conducted by the Mumbai Police’s Economic Offences Wing (EOW) into the alleged NSEL scam of approximately ₹5,600 crore.The case was initiated in 2014 on a complaint by an investor who claimed that he was cheated out of a huge amount. In 2012-13, an investor invested a huge amount with a broker who misrepresented that NSEL is extremely risk-free and could fetch guaranteed returns of 15-18% per annum.After the default at the NSEL platform in June 2013, one investor filed a complaint and an FIR was registered under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999.After a detailed investigation lasting nine years, the Mumbai Police filed 11 chargesheets in the case..The petitioner had approached the High Court in 2022 seeking attachment of properties of IIFL Commodities. The allegations were that IIFL had lured investors to invest on the NSEL platform, leading them to incur significant financial losses.The Court was informed in 2022 by the special public prosecutor Avinash Avhad that the investigating officer will take into consideration the properties as mentioned by the petitioner..The same petitioner again moved court in 2023. On December 15, the Bench ordered the Principal Secretary to file a comprehensive affidavit on the allegations made by the petitioner and counter-allegations of IIFL. Ten weeks after this order, the Principal Secretary filed a one-and-a-half page affidavit seeking leave to file another detailed affidavit, which the Court was not pleased with. "The affidavit filed is a 1½ page affidavit and not a comprehensive affidavit. The affidavit is also bereft of several details and is vague. It is stated that only after getting a final decision from this Court that the State by following due process of law will within a period of three weeks issue notification for attachment of the required property of IIFL, so that the Competent Authority will take further necessary steps, as per law," the order stated..After hearing the Principal Secretary on March 12, the Court posted the matter for hearing on April 16 and directed that the attachment notification be placed before the Court on that date. .Senior advocate Rajiv Chavan with advocate Gaurav Parkar appeared for the petitioner investor.Senior advocate Amit Desai with advocates Gopalakrishna Shenoy and Aditya Mehta appeared for IIFL. Special public prosecutor Avinash Avhad with advocate Sahil Ghule and additional public prosecutor PP Shinde appeared for the State..[Read order]