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NSEL investors appeal to PMO, corporate affairs ministry to fast track case, help settle dues

The letter also spoke in support of Ramesh Abhishek - the former Chairman of FMC and current Secretary of DIPP – who took action against 63 Moons and its promoters.

March 29, 2019 / 04:21 PM IST

Investors of National Spot Exchange Limited (NSEL) have approached the Prime Minister’s Office and Ministry of Corporate Affairs’ minister PP Chaudhary highlighting the delay in the case and recovery of their dues.

Investors wrote to the PM, and Chaudhary, raising 10 questions with respect to allegations against 63 Moons (the erstwhile FTIL).

The letter also spoke in support of Ramesh Abhishek - the former Chairman of FMC and current Secretary of DIPP – who took action against 63 Moons and its promoters. The investors association wrote an email a week ahead of the implementation of the model code of conduct.

NSEL investors received only Rs 65 crore of the recovery amount in the six years since the scam broke out on July 31, 2013. The total claim is for Rs 5,600 crore.

 “As the affected group of investors, we have always been reaching out to officers of the State and Central Government to highlight the delays in the recovery process caused by both the Government, and its arms and agencies,” said the investors, part of NSEL Aggrieved and Recovery Association.


Investors pointed out in their email that even after six years there was no clarity about the Settlement Guarantee Fund that was to help them get their dues.

The investors association raised questions such as, where did Rs 800 crore plus of Settlement Guarantee Fund of NSEL disappear just before the scam was exposed in July 2013? Who had hired NSEL management and kept them in charge since 2009 despite continuing and multiple irregularities, defaults and violations? Who appointed Mr Shankarlal Guru as the Chairman of NSEL, when his son-in-law Nilesh Patel was one of the largest defaulters on NSE?

They also questioned why ex-director and Jignesh Shah’s close confidante, Joseph Massey was running away from the police.

Investors also expressed their annoyance over transfer of Rs 31 crore received from NAFED to 63 Moons. “Why did NSEL clandestinely transfer Rs 31 crore that it received from NAFED to FTIL instead of distributing it to investors?” FTIL later tendered an unequivocal and unconditional apology to Bombay High Court for taking this money.

The investor association said, “The Ministry of Corporate Affairs is not pursuing the matters sincerely. The merger of NSEL with its parent company FTIL has been confirmed by the Hon'ble Bombay High Court in December 2017, the writ petition was filed in November 2014. Against the order of the High Court, FTIL has filed SLP in Supreme Court since February 2018. But the matter is not being heard even now and the ASG representing the Union of India has been allowing adjournments to FTIL.”

The association praised the decision of the former chairman of Forward Market Commission Ramesh Abhishek and said, “All the decisions of FMC were justiciable and could be and were challenged in the High Court and even the Supreme Court. No relief was granted to FTIL, clearly demonstrating that courts did not find anything wrong with the Not Fit and Proper order of FMC. If there was any bias or any prejudice, the courts would have clearly seen through.”

Responding to a query sent by Moneycontrol, 63 Moons said, “We have done whatever needs to be done as per the legal rights given to us under the Constitution of India. All the above points of your query are pertaining to 2013-14 and have already been raised in the past. Facts of these are a matter of investigation and part of court affidavits.”

“Any citizen, having respect for judiciary would like to have a trial held in the court, unlike your view of doing a proxy trial by you (individually) using the Moneycontrol platform without their consent and knowledge, we think.”

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Tarun Sharma
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