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The NSEL Investors Forum (NIF) plans to approach the Finance Ministry to accelerate the execution of the one-time settlement (OTS) approved by the National Company Law Tribunal (NCLT). The settlement between NSEL, 63 moons technologies, and investors involves Rs 1,950 crore to be paid to 5,682 traders against closure of legal cases and assignment of trader rights to 63 moons. Investors with smaller dues have already received payments. The OTS, which promises 49.3 & 64 per cent recovery for claimants, is considered fair, transparent, and a potential model for resolving similar financial disputes in India.
The NSEL Investors Forum (NIF), representing a large group of National Spot Exchange Limited (NSEL) investors, has announced plans to engage the Finance Ministry to ensure quicker execution of the one-time settlement (OTS) approved by the National Company Law Tribunal (NCLT). Advertisement
Sharad Saraf, NIF Chairman, described the agreement between NSEL, 63 moons technologies, and the investors as a historic settlement and a turning point after years of legal disputes. He emphasized that the forum would seek government support to execute the settlement plan as swiftly as possible.
The NIF has stressed its commitment to making the OTS execution smooth, transparent, and fully completed, seeking cooperation from the authorities at every stage. By approaching the Finance Ministry, the forum aims to ensure that the ultimate payment to investors is delivered faster and without complications.
The Mumbai Bench of the NCLT recently approved the OTS scheme, which provides for payment of Rs 1,950 crore to 5,682 traders based on their outstanding dues as of July 31, 2024. This settlement also involves the closure of all legal cases against the group and the transfer of trader rights to 63 moons technologies.
The NCLT described the scheme as fair and reasonable, noting that it does not violate any laws or public policy. The scheme had previously received overwhelming support during the NCLT-mandated voting process, with 92.81 per cent of traders by number and 91.35 per cent by value voting in favor.
Despite challenges, including the absence of a clear money trail to NSEL, 63 moons, and its promoters, the settlement received cooperation from all parties involved. Saraf highlighted that investors are hopeful this agreement will set a precedent for resolving similar disputes elsewhere in India.
He also acknowledged the support of both the Central Government and the State of Maharashtra, along with various investigating agencies, in facilitating the OTS. Saraf added that with NCLT approval in place, investors are now closer to receiving the settlement amounts.
The OTS targets investors with dues exceeding Rs 10 lakh, as those with smaller claims have already been compensated. So far, Rs 750 crore has been disbursed to claimants across all segments, largely due to NSEL's recovery efforts.
Once implemented, the OTS is expected to provide settlement payments ranging from 49.3 per cent to 64 per cent of the dues. This represents one of the highest recoveries in a structured financial settlement in India and could serve as a model for similar resolutions in the future.
Source PTI
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