SC directs IEX to pay Rs 31 cr dividend to FTIL

The Supreme Court has asked India Energy Exchange to pay Rs 31 crore dividend to Financial Technologies (India) within two weeks.

Allowing the prayer of FTIL, a bench of justices A K Sikri and Prafulla C Pant said, "The applicant/appellant (FTIL) wants that the dividends which are declared by...(IEX) be paid to the applicant/ appellant in respect of the shares held by it...

"The dividends are declared by IEX and the applicant/ appellant, who was shareholder for the period in question, is rightfully entitled to those dividends."

The bench asked the company to release the dividend from the "trust account within two weeks".

The apex court, while passing the order, also said that the counsel appearing for IEX states that the company had no objection for the payment of the dividend to FTIL.

The FTIL had divested its stake in IEX on November 19, 2015, following the Central Electricity Regulatory Commission (CERC) terming it "Not Fit and Proper".

Consequently, the FTIL had asked IEX to release the accrued dividend of Rs 31 crore.

FTIL had challenged in the apex court the authority of CERC to declare FTIL as "Not Fit and Proper" in the first place.

The FTIL had then filed an application before the Supreme Court seeking the release of dividend amount from IEX.