New Delhi, Dec 22 (PTI) The NSEL Investors Forum (NIF), an association representing the interests of a large number of investors of National Spot Exchange Limited (NSEL), will approach the Finance Ministry
to seek faster execution of one-time settlement (OTS), approved by the National Company Law Tribunal (NCLT).
"The historic settlement between NSEL and 63 moons, and the investors, is a turning point for all investors. It offers a concrete and fair resolution after years of legal battles and uncertainty. We will urge the Finance Ministry to help us execute the settlement plan as early as possible," NIF Chairman Sharad Saraf said.
The NIF remains committed to ensuring that the execution of the OTS settlement is smooth, transparent, and completed and seeks the support of the government at every stage.
Hence, it decided to approach the Finance Ministry so that the execution of the settlement and ultimate payment of money to the investors would be smoother and faster, he added.
Recently, the Mumbai Bench of NCLT approved the OTS scheme between NSEL and NIF. The Settlement Scheme envisages payment of Rs 1,950 crore to 5,682 traders in proportion to their outstanding as on July 31, 2024, against closure of legal cases against the group, along with assignment of all rights of traders in favour of 63 moons.
Describing the Scheme of Settlement as fair and reasonable, the NCLT had said the scheme is not in violation of any provisions of law and not contrary to public policy.
Earlier, the scheme, backed financially by NSEL’s parent 63 moons technologies, received the overwhelming support during the voting process mandated by the NCLT, with 92.81 per cent of traders by number and 91.35 per cent by value voting in favour of the proposal.
Appreciating the support and cooperation of NSEL and 63 moons technologies in making this possible despite there being no money trail to NSEL, 63 moons, and its promoters, Saraf said investors are hopeful that this will set a precedent for resolving similar disputes across India.
Saraf thanked both the Central Government and the State of Maharashtra, and the investigating agencies for their support of the OTS.
"With the NCLT approval, we have inched a step closer, and it is now a matter of time before we receive the settlement amount," he added.
The OTS is available for investors with dues of over Rs 10 lakh, as investors with smaller claims have already been paid. As much as Rs 750 crore has already been disbursed to claimants across all segments on the back of NSEL’s almost single-handed recovery efforts.
When it goes through, the OTS makes a settlement payment of an unprecedented 49.3 per cent to 64 per cent of the amount. Such a settlement will provide a roadmap for any financial settlement and will also pave the way for future financial settlements. PTI DP DP MR
