NSEL scam: HC stays Maha order freezing 63 Moons' bank accounts

The Bombay High Court Wednesday granted interim relief to 63 Moons, formerly Financial Technologies, staying a bunch of notifications or directions issued by the state government attaching the company's properties and bank accounts.

A bench of justices Ranjit More and Bharati Dangre in an interim order stayed a notification of the Economic Offences Wing (EOW) of the state police attaching 63 Moons' trading software 'ODIN' and the revenue generated from it, said advocate Sujay Kantawalla, one of the lawyers who represented the company in the court.

The state government had on April 4 issued a directive to freeze operating accounts of the company in connection with a Rs 5,574-crore fraud at its subsidiary National Spot Exchange (NSEL) in July 2013 following which the spot exchange went bust.

The scam led to NSEL promoter Jignesh Shah losing control over the bourse as well as his commodity and equity exchanges. It also led to the Centre bringing the commodities trading under the Sebi by abolishing the Foward Market Commission which was merged with the markets watchdog.

The government alleged that complaints were received from a number of depositors against NSEL that it had collected money by promising attractive returns but failed to return even the deposits when the time for repayment came.

Soon after, several properties and bank accounts belonging to the company were frozen or attached.

Jignesh Shah-owned 63 Moons had approached the Bombay High Court earlier this year seeking de-freezing of its bank accounts.

A detailed order of the bench is likely to be made public Thursday.