In MMTC’s recovery suit against NSEL, with MMTC attempting to raise the corporate veil for targeting the promoters, Financial Technologies (FTIL) is trying hard to shield the sale proceeds from SMX, reports CNBC-TV18’s Ashmit Kumar.
In the suit, MMTC has sought ad-interim relief in the form of securing the SMX sale proceeds. In November, FTIL sold the Singapore based SMX for a consideration of USD 150 million. FTIL is planning to use the sale proceeds to repay ECB dues. MMTC is seeking the USD 150 million dollars as security against its investment of Rs 220 crore in the trouble ridden spot exchange.
FTIL, Monday, proposed that it would offer other securities as an alternate to the SMX sale proceeds. FTIL reasoned that the company’s headquarters, housed in FT Towers in Mumbai was worth Rs 200 crore. FTIL also put on record that the director of the beleaguered National Spot Exchange Ltd, Jignesh Shah’s shareholding in FTIL, along with indirect holding through holding company La-Fin, would amount to 170 crore.
FTIL proposed that it would not dispose of FT Towers or the Jignesh Shah’s shareholding in FTIL. This, as per FTIL, would be sufficient for securing MMTC’s exposure to NSEL.
Interestingly, Jignesh’s Shah’s shareholding in FTIL has already been attached by the EOW, rendering any attempt to sell the shares, futile.
If the FTIL proposal is accepted, MMTC would be relinquishing its demand to secure the SMX sale proceeds.
MMTC has sought time to consider the FTIL proposal. The Bombay HC, meanwhile, has advised both parties to behave reasonably. A meeting between the two parties is likely tomorrow.
The matter will now be heard on December 12.
