ARK Imports Under Investigation

On the grounds of looting 13k trading clients Mr.Kailash Aggarwal a business man from Ludhiana was arrested. There are 22 defaulters responsible for money laundering act in NSEL crisis. Mr.Aggarwal the accused is the Dir.of ARK Imports known for being one of the defaulter company in the NSEL crisis. Being a part of Rs.5600 crore crisis Mr. Aggarwal and his son Mr.Anubhav Aggarwal was under the lens of investigative agencies and government. ARK Imports is one among the key accused who is responsible for duping 13,000 trading clients by and never returning dues.

Kailash Agarwal was arrested by ED on Friday from Ludhiana and produced before ED court. He is been sent in custody till 29^thSeptember. Kailash Agarwal had allegedly duped Rs. 719.21crore through money laundering on NSEL platform. Agarwal with his son Anubhav Agarwal raised money through NSEL platform, stating that they have stored commodity of same amount worth in his warehouse. Kailash Agarwal and Anubhav Agarwal looted trading clients on the ploy of trading in commodities like wool, paddy, wheat, mustard oil and had projected that they are in physical custody of these goods at their various warehouses based in Ludhiana, Samrala and Nawanshahr.

They put the looted money into real estate and transferred majority of Rs.719.21crore abroad. Economic Offences Wing (EOW), ED and Central Bureau of Investigation (CBI) have booked Kailash Agarwal and Anubhav Agarwal under various sections of money laundering and fraud. EOW has attached around 82 properties of Kailash Agarwal worth Rs.102crore. Anubhav Agarwal is known to be absconding and currently married to a Russian and living in Dubai. 

NSEL Reecovery Group

National Spot Exchange Limited was a platform for trading commodities and it came into news in the year 2013. It was due to the payment crisis happened on July 2013. The huge sum of Rs.5600crore was defaulted by the brokerage firms and defaulters. The issue came under scanner of the various agencies since then. Exchange was enforced to stop all trading activities & contracts.  After the payment crisis Securities Exchange board of India (SEBI), Investigating Agencies and NSEL had declared 22 members as NSEL Defaulters.

Investigation of these defaulters and brokers resulted in evidences where fraudulent transactions they made are reveled. According to NSEL and FTIL final merger order, it has been said that the outstanding amounts will be recovered from the selling defaulter’s assets. Hemce pursuing NSEL defaulters for recovery should be of chief importance.

NSEL has always been cooperating with all the investigating processes. They are willing to work with all parties to make sure complete resolution and has been continuously involved in recovery efforts. There has been various recovery efforts carried out by NSEL with the only focus to ensuring that genuine clients receive their claims. NSEL has taken efforts to affect recovery from defaulters. Recovery suits against all defaulters had been filed.

NSEL also lend a hand to Investigative Agencies in recovery process. Time to time NSEL had extended all assistance required to Economic Offences Wing (EOW), to discover & freeze assets of defaulters. Enforcement Directorate (ED) is supporting them to attach assets pertaining to defaulters. 


NSEL has been doing well in getting decrees on admission against 5 defaulters from the Bombay High Court to the sum of Rs. 1233.02 crores. NSEL has also been successful to obtained injunctions against the assets of defaulters from the Bombay High Court in respect of claims of Rs 4515.93 crores. A important part of the entire claim has therefore been secured and Rs 542.99 crores is already paid by NSEL. In view of foregoing, more than 100% of the claims of the traders are secured by way of decree, attachments and injunctions against defaulters. 

Dir.of ARK Imports involved in NSEL arrested

Ludhiana based businessman got arrested in NSEL case by Enforcement Directorate. The court gave permission to ED, five days of Aggrawal's custody to enable the agency to interrogate him and investigate the case.  The accused is brought him to Mumbai from Delhi for interrogation. He was earlier arrested in Mumbai in August 2014.The ED had arrested Krishna Aggrawal on Friday and produced him before a holiday judge at the sessions court on Saturday in Mumbai.

Holiday judge remanded Mr.Aggarwal for the custody of the agency till September 29 just a day after the ED arrested director of Ludhiana-based ARK Imports. The ED case is that the director Kailash Aggrawal has an outstanding payment default of Rs 719 crore. 

According to Vikram Chaudhary, senior counsel from Punjab, his arrest was illegal with reference to an order of Punjab & Haryana high court not to arrest him. H S Venegaonkar, counsel for ED said that this said protective order was valid only till August 12 of this year It was not continued by the HC. "Hence his arrest was absolutely legal,'' he submitted in court as he sought his custody for the probe. Venegaonkar said the ARK Industries director was one of the leading defaulters and had allegedly laundered almost Rs 719 crore from the NSEL platform and was "not divulging information''. 

NSEL case : Kailash Aggarwal from ARK Imports behind bars

On the grounds of money laundering the Enforcement Directorate (ED) arrested a businessman from Ludhiana in NSEL case. On Friday the they decided to take the actions against Mr.Kailash Agarwal from ARK Imports who is one of the biggest defaulter in NSEL crisis.

The accused, Kailash Agarwal of ARK Imports, had allegedly looted Rs 719.21 crores from trading clients through the NSEL platform. It was his strategy to fool the trading clients by saying that he had stocked woollens of the same worth in his godown. Afterwards, he allegedly defaulted on payments. On Saturday, Aggarwal was produced before an ED court which sent him to the custody of the agency till September 29.

NSEL sources stated that, Aggarwal is among the key accused who is guilty for cheating 13,000 investors of Rs 5,600 crores in 2013. Anubhav Aggarwal, son of Kailash Aggarwal is absconding for a long time and he is currently living in Dubai. They have invested the NSEL’s defaulted money in real estate and most of the funds are diverted to overseas. It was realized that they assured the trading clients about having possession of trading commodities like wool, paddy, wheat, mustard oil at their warehouses at Ludhiana, Samrala and Nawanshahr. If found guilty he can be imprisoned for 7 years.

Top Broker in NSEL proved guilty - Geojit Comtrade

National Spot Exchange Ltd. came into discussion on a larger basis when NSEL crisis surfaced in 2013. The matter came under scanner of multiple agencies since then. Exchange was forced to shut down and suspend all its trading contracts. When the NSEL and its parent company FTIL was getting targeted, in actuality it was a well planned strategy of defaulters and brokers. It was stated that many investors claimed that the brokerage firms used their money & account details fraudulently.

Reportedly Udaipur-based NSEL investor Achal Agarwal invested his money through a well-known broker Geojit Comtrade. Mr. Achal filed a complaint against his broker and has suspected that his broker has swindled money under his name. Mr. Agarwal also learned about the unsought-disbursement of loan against Geofin Comtrade and Geojit Credits’ Ltd. These brokers together dishonestly used Mr. Achal’s account and PAN details to invest their huge amounts on NSEL platform.

Mr. Agarwal told Business Line that the outstanding receivable amount mentioned on his name was shocking. The outstanding receivable amount mentioned in NSEL was Rs. 4 Crore whereas the actual amount was only 9.75 lakh. Achal also stated that he has not taken any loan from anywhere for investing on the NSEL platform. He has also not received any such amount in any of his personal account. However, the actual trading amount of Achal Agarwal on NSEL platform through GeojitComtrade was Rs. 9.75 lakh.

The Bombay High Court gave instructions to the High Court Committee to seek KYC (know your customer) details from NSEL investors. Bombay High Court also asked NSEL and investigative agencies to be acquainted with the actual truth from the broker.

Mr. Achal has filed a complaint to the High Court Committee (HCC) on 4th July 2015. He has probed to investigate in this matter and consider this money laundering a serious manner. The forgery is done by Geofin Comtrade and Geojit Credits Ltd; a company owned by C P Krishna.  

NSEL Defaulters and Defaulting Brokers

On July 31^st, 2013 the Rs.5600crore National Spot Exchange Ltd. (NSEL) crisis surfaced. The matter came under scanner of multiple agencies since then. Exchange was forced to shut down and suspend all its trading contracts.  After the payment crisis Regulatory Body, Investigating Agencies and NSEL had declared 24 members as NSEL Defaulters.

Brokerage firms involved in the NSEL crisis were also under the observation due to their fraudulent behavior. It came into light that some of the brokers gave promise of assured returns to the trading clients, which turned out to be wrong resulting into crisis. Corporate Affairs Ministry and other agencies including Enforcement Directorate (ED) have been investigating the defaulting brokers in the Rs.5600crore NSEL crisis case. SEBI was also been asked by government to take necessary action against these defaulting brokers.

Mr.Arun Jaitely the Finance Minister had told Lok Sabha that other than Corporate affairs Ministry Economic Offences Wing (EOW) and ED are also investigating the NSEL matter. EOW had attached properties of the accused worth Rs5757crore (approx.) and Rs.1222.89crore, 32 common properties had been attached by ED of Rs.740crore (approx.). Arun Jaitely in a written reply to Lok Sabha had said that SEBI is directed to examine and take necessary actions against defaulting brokers.

 In case of brokers various agencies are investigating into their role. It is proven in the audit report that defaulting brokerage firms named Anand Rathi Commodities, Geofin Comtrade, Motilal Oswal Commodities, India Infoline Commodities and Philip Commodities are guilty. SEBI with EOW and ED is investigating the role if these brokers in NSEL crisis Case.

NSEL Broker’s face recovery suits

Brokerage firms played a major role in the Rs.5600crore National Spot Exchange Limited (NSEL) payment crisis. Investigation agencies have been investigating brokers over cases filed against them. Trading clients in the case had earlier filed recovery suits against brokers alleging that they were involved in various fraudulent activities in regards to trading on NSEL platform.

On July 2013 the NSEL crisis came to light. Since then matter is investigated by many agencies. Exchange was forced to suspend all its trading contracts. Trading clients have filed separate cases against top five leading brokerages. Suits are filed in over brokers for mis-selling and wooing them to invest in agri commodities.

Economic Offences Wing (EOW) of Mumbai police had arrested officials of some commodity brokerage firms on charges of inducement and mis-selling of NSEL products in the past. Enforcement Directorate (ED) is also interrogating the top officials of broking firms to ascertain their role in the case. Evidently, some brokers had high exposure in the NSEL case. Among them were Anand Rathi (Rs.629crore), India Infoline Commodities (Rs.326crore) and MotilalOswal Commodities (Rs.263crore). Other broking firms with explore in NSEL are Phillip Commodities (Rs.140crore), Geofin Comtrade (Rs.313crore) and Systematix Commodities Services (Rs.277crore).

SEBI has also launched probe against leading brokerages into alleged mis-selling of products with the promise of assured returns from commodities traded on the NSEL. SEBI is also investigating brokers over various complaints including false assurances, inducements and misrepresentation, trading without appropriate authority from clients, misuse or unauthorized modification of unique client code, funding by NBFCs related to the brokers and non-receipt of payouts by clients.

Recovery suits against AnandRathi, India Infoline Commodities, MotilalOswal Commodities and Phillip Commodities are filed by trading clients in Bombay High Court. These six trading clients have put their hope in the legal system and investigating agencies; we can hope that they receive justice in least possible time, thus ending their long awaited suffering.