Lotus Refineries, which was declared as a defaulter by NSEL, has made public its bank statement to rebut the claims of receiving Rs1,704 crore as alleged by the Spot Exchange

Lotus Refineries Pvt Ltd against whom the National Spot Exchange Ltd (NSEL) had filed a complaint has rebutted claims made by the Exchange. The company, while making public its transaction details with NSEL, said it had not received the Rs1,704 crore, which were shown as paid on the records by the Spot Exchange.

Making public the transaction details, Lotus Refineries has also accused NSEL of faking the real time gross settlement systems (RTGS) details. The bank statement details of Lotus Refineries shows that while NSEL claimed that money was transferred in Lotus Refineries accounts, it was never credited. "We demand a stringent probe into the malpractice; we suspect that the amount might have been used for money laundering," says a spokesperson of Lotus Refineries.

Here is the bank statement made public by Lotus Refineries...

According to media reports, the EOW has found mismatch in accounts of NSEL and borrowing members. So far 40 officials from the Exchange have appeared before the EOW.

Meanwhile, the EOW has arrested NSEL warehouses head Jai Bahukhandhi. This is the second arrest in the case.

According to a report from Business Standard, the income tax (I-T) department has found NSEL guilty of evading taxes of at least Rs100 crore.

Earlier on 26 August 2013, NSEL filed complaint against five of its defaulting members, Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, NK Proteins Ltd, Vimladevi Agrotech Ltd and Yathuri Associates, before the investigation authorities. In a statement, NSEL had said it declared its nine members as defaulters when they did not complete the last pay-in. "Amongst these nine defaulting members, the exchange has initiated case for investigation against five defaulting members who did not have adequate commodities in the warehouses, which is against the mechanism specified in the Exchange circulars. Non-delivery of commodities or its withdrawal is a breach of faith and breach of contractual arrangements," the release from NSEL said.

However, Lotus Refineries said it was the first company to challenge NSEL and drag the spot exchange to Bombay High Court. "Lotus Refineries Private Ltd filed a claim suit worth Rs2,773.29 crore against NSEL in Bombay High Court for goods being in the possession of the exchange (defendant) acting in fiduciary capacity in the warehouse owned and managed by the commodity exchange," the release said.

As per the claim suit, Lotus Refineries has purchased goods worth Rs2,665.04 crore while trading on the Exchange. However, NSEL had failed to deliver goods worth Rs2,640.79 crore until this date. The Bombay HC has appointed a court receiver to take stock of the inventory of goods as set out in its complaint by Lotus Refineries against the NSEL, the release added.