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. 

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.

Evidences point out NSEL Defaulters

National Spot Exchange Ltd. (NSEL) came into focus when the crisis surfaced in the year of 2013. Since then various agencies are investigating the case. Exchange platform was shut down immediately and enforced to stop all its trading contracts. After the payment crisis Regulatory Body, Investigating Agencies and NSEL had declared 24 members as NSEL Defaulters.

Defaulters are the borrowers. The defaulters who are accountable for the NSEL payment crisis are N.K.  Proteins, Mohan Group, LOIL Group, Ark Imports Pvt Ltd, PD Agroprocessors Pvt Ltd, Yathuri Associates, Lotus Refineries Pvt Ltd, Aastha Group, Metkore Alloys & Industries Ltd, Swastik Overseas Corporation, White Water Foods Pvt Ltd, Namdhari Group, NCS Sugars Ltd, Spin-Cot Textiles Pvt Ltd, Vimladevi Agrotech Ltd, Shree Radhey Trading Co and MSR Food Processing.

All the officials who are investigating the NSEL case have the money trail traced to all these defaulters. It states clearly that defaulters have all the money laundered in NSEL case and it is siphoned to middle east where defaulters own assets in forms of properties and lands. Even after three years after the NSEL crisis the defaulters who have 100% of the traders’ amount are still roaming free. The defaulters diverted trading clients’ money into parallel businesses instead of returning the outstanding dues. The defaulters cheated the trading clients by hypothecating stocks to banks, investing the default amount in purchasing benami properties and also slowed down the recovery process by making it difficult. All the evidences point out to the defaulters.

On August 12, 2013, FMC in its letter had stated that there was a possibility that the defaulters have violated the Prevention of Money Laundering Act (PMLA). The Honble’ Bombay City Civil Court, vide its order has observed that it appears the persons responsible for default in payments are the defaulters where all the trading clients are targeting NSEL and FTIL.

Defaulters of NSEL crisis

NSEL payment crisis surfaced on July 31, 2013 and then exchange suspended trading in all its contracts. The crisis was assessed at a surprising amount of around Rs. 5,600 crores. However a enormous sum of this amount is recoverable from the real culprits, borrowers connected to NSEL. Borrowers are also known as Defaulters of the crisis which are roaming scot-free till date. This recoverable amount is estimated to be as high as around Rs. 5,300 crore which is to be made from the sale of property belonging to defaulters. Most of these properties are known to be located in Middle-east.

NSEL had declared 22 members as ‘Defaulters’ in 2013 as per Rule 41 of the Exchange Bye laws. Let us know these NSEL Defaulters closely by their defaulting amounts, Injunctions and Decrees obtained against their assets till date. 

These defaulters who have 100% of the traders’ amount are still roaming free even three years after the 2013 crisis emerged. The defaulters pushed out the trading clients’ money into parallel businesses, instead of returning the outstanding dues almost to the tune of Rs.5600crore. The amount received as a result of sale of attached assets will later be paid to as many as 13,000 investors when they will finally receive justice.  

ARK Imports the NSEL Defaulter

In the year 2013 when National Spot Exchange Limited crisis came into light the parent company FTIL is blamed. But the defaulters who are actually responsible for all the money laundering are roaming scot-free. Defaulter AasthaMinmet, ARK Imports, White Water are some of the defaulters who are investigated by investigating agencies.

ARK Imports is the Punjab based company. The fourth-biggest defaulter ARK Imports owes Rs 719.21 crore to the National Spot Exchange. ARK Imports led by Kailash Aggarwal and Anubhav Aggarwal. Amongst them Kailash Aggarwal was arrested on 11 Aug 2014 but released on 11 Sep the same year. Anubhav Aggarwal is absconding.

NSEL recovery group is working hard for the recovery of defaulted money from all of the defaulters & giving it back to the investors. Due to the continuous efforts of the recovery group they are successful in obtaining decrees for the assets of NSEL defaulters. They are successful for getting decrees for the assets of ARK Imports worth Rs.719 crore.

There are other defaulters like ARK Imports who are spending their lives on the defaulted money of NSEL investors. Enforcement Directorate is considering freezing assets of some other defaulters for the recovery of NSEL money.