Nsel scam_ to recover lost money, investors want change in money laundering act _ west, news – india today

In Rs 5,600-crore NSEL scam, the Enforcement Directorate (ED) has effectively attached assets of borrowers/defaulters to the tune of around Rs 400 crore and has identified assets to the tune of Rs 4,000 crore.

Gagan Suri, CEO of Yathuri Associates, was arrested in Mumbai. Advantages of money laundering The Chandigarh-based company has allegedly defaulted NSEL close to Rs 360 crore. Money laundering quiz Apart from this, notices have been sent to five top commodity brokers seeking details of financial transactions.


As such, NSEL Investors Forum has shot off a letter to the Enforcement Directorate in Delhi with a request to amend its Prevention of Money Laundering Act (PMLA), 2002, in order to safeguard investor interests.

Arun Dalmia, secretary, NSEL Investors Forum, in his letter to director, ED, said, “The investigations being carried out by ED are the only factor which are providing a ray of hope to investors who have lost their life savings and striking fear in the hearts of the borrowers/defaulters.”

Today, the investigations being carried out by ED are governed by the PMLA, 2002. Money laundering in india In its present form, the Act is not equipped to help investors get a refund on their monies.

“If PMLA was well-equipped, in the NSEL case itself, the sale proceeds of attached properties could be immediately returned to the investors. Money laundering regulations for estate agents This could be done by way of inserting the clause of restitution which is prevalent in a lot of global economies, whereby gain-based recovery mechanism is set up and investor monies can be recovered swiftly,” Dalmia said.

PMLA is primarily used to identify, track, freeze and attach accounts, properties and assets of terror elements, drug lords, mafia bosses and weapon suppliers.

The money and assets seized under PMLA were therefore by default considered property of the state. How money laundering works Hence, there was never a mechanism to recovery and refund the money in PMLA.

Even in cases such as City Limouzine scam, savings of taxi and car drivers and middle-class citizens are stuck in limbo for years. Fraud money laundering Many have died without seeing a penny of their investments and savings.

Category A – These are investors have invested their entire life savings, lured by fraudulent promises by the NSEL. Process of money laundering These are typically pensioners, retired officers and senior citizens who had entrusted their savings in NSEL contracts to manage day-to-day expenses. Anti money laundering statistics At present, these investors are worst-hit with practically no money in hand.

Category B – These are investors are young and middle-aged professionals and businessmen who have systematically invested their savings in NSEL-paired contracts.

“Investor’s interest could be safeguarded only when attached assets, properties or cash amount from the accused parties go back in investors’ pockets. Money laundering rules Otherwise, it would take ages to resolve grievances,” said one official.