Financial Technologies is confident that justice will be delivered, said the company's chairman Venkat Chary as it fights the government over the proposed merger of FTIL with scam-hit NSEL.
Speaking exclusively to CNBC-TV18’s Prerna Baruah, Chary termed the government allegations at the Company Law Board as frivolous and baseless.
“We are confident that judiciary will give FTIL justice. The Ministry of Corporate Affairs’ (MCA) contention is that both merger and superseding FTIL board are proceedings under different sections of Companies Act. MCA believes that they are free to pursue both alternatives,” Chary said, adding that the Bombay HC has directed FTIL stakeholders to raise objections on merger till March 6.
“The merger will destroy principle of limited liability of companies and foreign investments in India,” Chary said, adding that the idea of asking the company to expedite stake sale in MCX was conspiracy.
According to him, even the reports suggesting incurring Rs 290 crore loss due to MCX equity sale is baseless. “Brokers played a major role in NSEL payment default. They (brokers) should have paid investors,” Chary said.
FTIL will file a rejoinder to CLB on MCA’s petition Thursday.
Below is the verbatim transcript.
Q: The Bombay High Court has dismissed the Notice of Motion filed by FTIL that sought to restrain the government from moving the CLB. Bombay HC said that the relief sought in the motion was without any substance. What is your counter to this?
A: We will be filling our rejoinder to the company petition filed by the union of India before the companies law board (CLB). We will be given full opportunity to present our case. We are opposing the petition and we will show to the CLB that the proposal to change the management, the board of directors how it is bad in law. To give you an example, 8 board members of the present 12 members of the board of directors of FTIL joined the board only on November 20 2014. In the petition to the CLB the union of India has accused these 8 people for whatever happened in July 2013.
Q: The new board has been setup only post the entire crisis that hit in 2013. However in the petition of the ministry of corporate affairs it alleged that FTIL board, the new board that has been constituted post the crisis is trying to oppose the merger and is preventing the recovery process of NSEL. It also did say that the stake sale in MCX was caused at a huge loss. So, what are the arguments put forward?
A: The allegations are baseless, frivolous, mischievous and even defamatory. Therefore all these facts will be brought to the attention of the CLB and this will be opposed tooth and nail. We are sure that the CLB will do justice to us.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
