NCLT Mumbai approves one-time settlement scheme between NSEL and 5,682 traders

This decision will bring major relief to traders whose funds were stuck in the NSEL payment crisis of July 2013. Representational Pic

The National Company Law Tribunal (NCLT), Mumbai, has approved the One-Time Settlement Scheme between National Spot Exchange Limited (NSEL) and traders on Friday.

NSEL, with the support of its parent company, 63 Moons Technologies Limited, had filed a Scheme of Settlement before the Hon'ble NCLT, Mumbai, for a one-time amicable full and final settlement with 5,682 traders.

The Scheme of Settlement was put to a vote by the Hon'ble NCLT, wherein a whopping 92.81 per cent of traders by number and 91.35 per cent by value voted in favour of the One-Time Settlement.

The Settlement Scheme envisages payment of Rs. 1,950 crores to 5,682 traders in proportion to their outstanding balances as of 31 July 2024, in exchange for the closure of legal cases against the group, along with the assignment of all rights of traders in favour of 63 Moons.

Back in August 2013, NSEL, with the support of 63 Moons, had paid around Rs. 179 crores, providing relief to 7,053 smaller traders with outstanding balances of less than Rs. 10 lakh. 63 Moons has once again stood up for the cause of traders, despite no direct money trail to NSEL, 63 Moons, or its promoters.

This decision will bring major relief to traders whose funds were stuck in the NSEL payment crisis of July 2013.

Neeraj Sharma, MD and CEO of NSEL, said, "This would not have been possible without the positive approach of the present BJP government (Central and State) in resolving the crisis, which was not addressed by P. Chidambaram and the UPA-2 government, for reasons best known to them."

Dr Sharad Kumar Saraf, Chairman of the NSEL Investors' Forum (NIF), expressed gratitude for the efforts of 63 Moons and NSEL, along with the support from the Central and State governments, in achieving this closure.

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