FTIL opposes MCA petition to supersede its board

Financial Technologies today said its Board has unanimously opposed the Ministry of Corporate Affairs (MCA) petition to Company Law Board (CLB) seeking "removal and supersession" of the FTIL Board.
In a filing to the BSE, the company said, "The Board of Financial Technologies, which met on Sunday, March 1, 2015, passed the resolution to strongly oppose the Ministry of Corporate Affairs (MCA) petition to Company Law Board (CLB) seeking removal and supersession of the FTIL Board."
The Board said that it is a "clear attempt by the MCA to render ineffective and in fact, defeat FTIL's challenge and opposition to the proposed amalgamation of NSEL with FTIL."

In October last year, the Ministry of Corporate Affairs had also ordered merger of the NSEL with Financial Technologies (India) Ltd. The move was aimed in ensuring faster recovery of dues for entities hit by the Rs 5,600-crore fraud at NSEL.
In the filing, FTIL further said: "As such, MCA pleads (unjustifiably) that a bona fide objection or challenge to its proposed actions, amounts to mismanagement on the part of the Board. Such allegations on the part of MCA seem to be mala fide and deserve to be challenged and opposed."
FTIL Acting Chairman Venkat Chary said, "After deliberating on the matter and also considering that the issue is totally prejudice, malafide and not in the interest of FTIL, its Board, its employees, its shareholders, and other stakeholders, we have decided to contest all issues raised by Union of India vigorously as per the law of the land,"

He further said that the Board is competent enough to deal with the current situation and the company will file a petition before the Bombay High Court or the company law Board or at any other appropriate forum as it deems fit to contest.

The Board also resolved that, since the company's four legal suits are sub judice -- including representative suit, fit & proper and writ petition filed opposing amalgamation of NSEL with FTIL -- "the petition by MCA is inequitable to seek replacement of the entire Board."
Strongly rebutting the allegations that have been levelled in the MCA's petition, the FTIL Board said it acted prudently in the larger interest of over 63,000 shareholders, the filing added.

The shares of the company surged by 16.76 per cent to Rs 208.50 a piece on the BSE at 12.50 pm.