NSEL Case: 63 Moons claims overwhelming response on settlement scheme

NSEL Case: 63 Moons claims overwhelming response on settlement scheme

Technology firm 63 Moons has claimed that its settlement scheme in National Spot Exchange (NSEL) has received more than 90% favourable response. NSEL, in a press release, said a whopping 92.81% of traders in number and 91.35% in value voted in favour of the resolution, thereby giving their assent to the scheme of settlement.

As per the scheme of settlement, an amount of Rs 1,950 crore shall be paid to 5,682 traders in proportion to their outstanding as on July 31, 2024. This settlement would mean closure of legal cases against the group along with assignment of all rights of traders in favour of 63 moons.

NSEL claimed that 7,053 small traders have got all the dues and 5,682 traders with claims of above Rs 10 lakh will get around 42% of their dues.

63 Moons, the parent company of NSEL, has offered to settle the case with the NSEL investors for Rs 1,950 crore as one-time settlement to resolve the matter. As per the terms of the agreement, this settlement will be full and final for the investors.

After taking a feedback on the settlement issue with NSEL investors, 63 Moons proposed settlement in November last year and in February, 63 Moons board approved the proposal for this scheme. 63 Moons had filed a settlement application with the National Company Law Tribunal (NCLT), which directed to seek consent from investors. For transparency, an escrow agent and monitoring authority will be appointed to oversee the disbursement of funds to the investors.

The settlement scheme is expected to close the legal cases filed by investors against NSEL and 63 Moons. The settlement scheme will end the 12-year long legal battle against the 63 Moons group and allow the management to focus on its core business.

Due to defaults at the NSEL exchange by borrowers in 2013 more than 13,000 investors, with around Rs 5,600 crore funds, got stuck. Though some partial payments were made over the years but the significant dues were pending and the recovery process for investors with more than Rs 10 lakh dues was slow and painful.