We are not liable for any dues of NSEL today: 63 moons technologies

The statement comes when the company is set to move SC to challenge the Bombay HC's judgment ordering the company to merge with the NSEL

63 moons technologies, formerly known as Financial Technologies India Ltd (FTIL), claimed on Thursday that it would not be liable to pay National Spot Exchange Ltd (NSEL)'s pending dues worth Rs 52.7 billion, if the two entities are merged.

The statement comes at a time when 63 moons technologies is set to move Supreme Court to challenge the Bombay High Court's judgment ordering the company to merge with the NSEL.

"There are no liabilities today. Nothing has been proven. Not one contract entered into on NSEL platform has been proved illegal or irregular as on today," Venkat Chary, Chairman of 63 moons technologies said here on Thursday.

“But there may be a putative liability that means if the cases go ahead and finally it is decided that NSEL is to blame…then it becomes a liability. If any wrongdoing is proved against NSEL then at most we can take it to bankruptcy. We, as a holding company, have invested Rs 40 crore in NSEL and we will lose only that amount,” Chary added.
 

He added that the Bombay High Court has granted a 12-week stay for the merger to be effective and the company will be moving a special civil application in the apex court during this period.

On December 4, the Bombay High Court upheld the order of the Union Ministry of Corporate Affairs (MCA) for a merger of scam-tainted National Spot Exchange Ltd (NSEL) with its parent firm, 63 moons technologies, earlier named FTIL.

In February 2016, the Union government had ordered the merger of two private entities – NSEL and 63 moons technologies, exercising its power under Article 396 of the Companies Act, citing public interest. However, 63 moons technologies challenged the order in Bombay High Court that quashed its petition and gave a green signal to the merger.

The payment crisis on NSEL came to light in July 2013 when commodities traded on the tainted exchange were found to be not backed by stocks in its warehouses. 63 moons has 99.9 per cent stake in NSEL.

“The forced merger will set dangerous precedence on limited liability of independent corporate identity and its shareholders. This will have more damaging consequences on the investment climate of the country,” Chary said.