SC upholds Maharashtra's decision to attach 63 Moons assets under depositor protection Act

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In a setback for 63 Moons Technology, the Supreme Court on April 22 upheld the decision of the Maharashtra government to attach the company's assets under the Maharashtra Protection of Interest of Depositors (MPID) Act in relation to the National Spot Exchange Ltd (NSEL) case.

The court set aside the judgment of the Bombay High Court that had quashed the notifications by the state government against 63 Moons.

The Maharashtra government had issued notices for attachment of assets for allegedly defrauding over 13,000 investors. The value of the alleged fraud was over Rs 5,600 crore and 63 Moons was alleged to have induced investors on the NSEL platform.

This came after a complaint by Mumbai police's Economic Offences Wings which led to 63 Moons, formerly Financial Technologies, approaching the Bombay High Court.

Giving relief to the company, the high court had ruled that NSEL is not a financial establishment and as such action under MPID Act cannot be invited in the matter. The court had quashed the notifications under this Act to attach the company's properties.

This decision now stands reversed by the Supreme Court.