The special court hearing the National Stock Exchange Limited (NSEL) case, earlier this week, allowed the plea of the NSEL Investor Action Group (NIAG) to intervene in the proceedings related to liquidation of the assets of 63 Moons worth nearly Rs2,000 crore. This will help clear the dues of many investors waiting for years.
The special court is likely to start the process of liquidation of assets as the Supreme Court has rejected the contention of the company that it was not a financial establishment and thus its assets cannot be liquidated. After the apex court verdict, the special court has now asked the company to submit its objection.
Meanwhile, the group’s lawyer would be allowed to submit detailed notes of arguments and argue only on specific crucial law points. The group has been asked not to pressure the prosecution at any point of time. It will also not be allowed to examine or cross examine or lead any evidence in the proceedings.
The NSEL case
The NSEL case, which came to light in 2013, involves a settlement crisis and payment default of Rs5,574 crore that led to losses for 13,000 investors. It pertains to the hatching of a criminal conspiracy to defraud investors, inducing them to trade on the platform of NSEL, creating forged documents like bogus warehouse receipts, falsified accounts and thus committing a criminal breach of trust.
The accused are booked under the provisions of Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act), wherein the competent authority can attach the properties of the defaulter to liquidate it in order to repay the funds to investors.
