NSEL investors forum seeks Maharashtra CM's help for ₹1,950 cr settlement

The NSEL Investors Forum (NIF) has written to Maharashtra Chief Minister Devendra Fadnavis, seeking his support for a proposed one-time settlement worth ₹1,950 crore between investors and the National Spot Exchange Ltd (NSEL).

This long-awaited settlement aims to bring major relief to thousands of traders whose funds have remained stuck since the NSEL payment crisis of July 2013.

In a letter addressed to the Chief Minister on June 19, the forum appealed to the state government to avoid any adverse actions that could hinder the settlement process.

It stated that "any decent or negative response from the State/ Competent Authority/ EOW in the NCLT might derail or delay the settlement process."  To facilitate a smooth resolution, the forum has requested the state government to designate a senior legal expert with expertise in company law to represent and guide the state's stance before the NCLT.

"We humbly urge the Chief Minister to issue necessary directions to relevant authorities and departments to avoid any hasty or negative steps that may derail or delay the proposed settlement," the forum stated.

The forum emphasized that after nearly 12 years of chasing various recovery mechanisms, a consensus has finally been achieved between NSEL and its investors.

The proposed settlement scheme has been formally submitted under the Companies Act to the National Company Law Tribunal (NCLT), Mumbai, marking a major step toward closure for affected traders.

As per the settlement plan, a total of Rs 1,950 crore will be distributed among 5,682 traders in proportion to their outstanding dues as of July 31, 2024.

The NCLT has already admitted the company petition, with the final hearing scheduled for July 11.

NSEL, supported by its parent company 63 moons technologies, filed the Scheme of Settlement before the NCLT to facilitate this one-time, amicable, and full-and-final resolution for the affected traders.

The proposal itself originated from the NSEL Investors Forum (NIF), which represents a significant portion of the impacted trading community.

This is not the first time NSEL and 63 moons have attempted to offer relief. In August 2013, they disbursed around Rs 179 crore to assist 7,053 smaller traders, each with outstanding amounts of less than Rs 10 lakh.