Shankarlal Guru, the non-executive Chairman the National Spot Exchange (NSEL), has resigned saying some 'bad people' have entered the crisis-ridden exchange and were responsible for its woes.
Mr. Guru’s resignation comes on the heels of at least two directors on the five-member board of NSEL quitting as the exchange struggled to clear Rs 5,600 crore payment due.
Ramanathan Devarajan and B.D. Pawar, non-executive directors have quit, leaving just Jignesh Shah, who owns FTIL, the single largest promoter of NSEL, and Joseph Massey on the board.
'I resigned from Board of Directors of NSEL on August 7 as I and (NSEL director) BD Pawar felt that our mission of promoting agriculture marketing is not being followed and there has been such a big scam in the exchange, which is not the right thing. I have nothing to do with this issue,' Mr. Guru told PTI.
The Non-Executive Chairman is not responsible for day to day functioning or running of the exchange.
NSEL should be brought out of this crisis and the few 'bad people' who have entered the exchange should be punished, Mr. Guru, who has been a former Member of Legislative Assembly from Unjha (Gujarat) added.
'The government has the machinery and it should take the money and return the hard earned money of the investors. There are some bad people in the exchange who should be punished,' he said.
He, however, refused to name the persons or elaborate on 'bad people' entering NSEL.
NSEL, promoted by Jignesh Shah-headed FTIL, is facing the problem of settling Rs. 5,600 crore dues to 148 members/ brokers, representing 13,000 investor clients, after it suspended trade on July 31 on government direction.
On the issue of his son-in-law and NK proteins Managing Director Nilesh Patel’s involvement in the controversy, Mr. Guru said he has not helped him in any way.
NK proteins is one of the biggest defaulters with a liability of Rs 929 crore.
'I understand he is my son-in-law, but if he has done the wrong thing, he should be punished for it. I have nothing to do with this. I am being associated with it as I was the board chairman,' he said.
'I have been serving the people for so many years and I’m in no way related to this crisis. If NK proteins has done wrong, they should be punished,' he said.