PwC, in its special audit report on Multi Commodity Exchange of India’s operations, has raised questions on the sale of its warehousing arm, National Bulk Handling Corp, to Financial Technologies (India) Ltd in 2005 at book value of just 500,000 rupees.

“MCX could neither provide any information regarding the financial position of NBHC (National Bulk Handling Corp) at the time of sale nor confirm whether a valuation of NBHC was undertaken prior to the sale to determine the appropriateness of the sale at book value,” the report said.

National Bulk Handling Corp was incorporated in April 2005 as a wholly owned subsidiary of MCX for providing warehousing services to the exchange. The PwC report also noted that MCX was neither able to provide any agreement between MCX and Financial Technologies for sale of the warehousing arm nor could it provide the minutes of the board meeting mentioning the reasons for the sale.

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