NSEL merger decision likely by Monday

Maharashtra to begin auctioning attached properties from next month

The Union finance ministry on Thursday asked the ministry of corporate affairs (MCA) to decide by Monday on the issues relating to merge of scam-hit National Spot Exchange (NSEL) with its erstwhile promoter, Financial Technologies (FTIL).

The government had proposed this in the wake of the payment default of Rs 5,600 crore at NSEL in July 2013. Controversial, as NSEL was formed as a limited liability company and it is not established yet that the default amount is its liability.

MCA had issued a draft order, proposing to merge NSEL with FTIL in October 2014. Since then, this has been the subject of legal battle. A meeting was chaired in this regard on Thursday by Shaktikanta Das, secretary, economic affairs.

A team of secretaries was appointed in 2013, soon after the default and it has had 10 meetings so far, stated the finance ministry on Thursday.

The government of Maharashtra has started the auction process for two of the attached properties at the entity in question, to recover the money at stake. The first auction is scheduled for March 15. The state has notified attachment of properties worth Rs 5,357 crore under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act. The Union ministry says the state has been advised to auction unencumbered properties having court approval for auction and review the progress fortnightly.

The attachments were by the Mumbai Police’s economic offences wing and have been vested with the district collector.

Actions so far by the probe agencies were also reviewed in Thursday’s meeting.