Govt seeks 6 weeks in NSEL-FTIL merger case

Conveys to the Bombay HC that it needs more time to examine submission filed by FTIL

The government has sought six weeks' time from the Bombay High Court to respond to the plea filed by the Financial Technologies Ltd (FTIL) challenging the final merger order with National Spot Exchange Ltd (NSEL) issued by the Ministry of Corporate Affair (MCA).

The HC had earlier given time till June 10 to file a reply to the MCA and now has scheduled the hearing for June 15. The ministry made application in the court for extension in the hearing date as it needs time to examine and file an appropriate reply on the submission filed by FTIL in the court.

The court on Friday asked the ministry to file a chamber summons. Chamber summon is typically instituted in court to take on record the parties to amend the existing plaint according to the changed circumstances.

The MCA on February 12 ordered a merger between FTIL and its unit NSEL, making FTIL responsible for the liabilities of the fraud-hit commodities bourse. The government had issued a draft merger order on October 21, 2014.

The FTIL had challenged the draft order in the HC, which ruled that the company could file its objections with the government and move court if the latter passes an adverse order.

The hearing in the matter was postponed as the government needs time to examine and file an appropriate reply on the submission filed by FTIL in the court.

FTIL owns 99.99% of NSEL, on which trading was suspended after a Rs 5,574.35 crore fraud came to light in July 2013.