NSEL case — Defaulting company fined
Jignesh Shah’s Financial Technologies India Limited (FTIL)’s auxiliary National Spot Exchange Limited (NSEL) is in the news yet again. LOIL group, one of the defaulting companies has been fined by the High Court of Punjab and Haryana after NSEL filed petitions. All the cases involving LOIL in the NSEL payment default will be transferred to the courts of Mumbai currently handling the case.
The group has been, apparently, evading hearings before the Maharashtra Protection of Interest of Depositors (MPID). The process had been clearly adding on difficulties for the agencies investigating the matter. LOIL was taking advantage of the jurisdictions of courts as stated by Justice Anil Kshetarpal. The case entertains a single-judge bench.
Jignesh Shah’s Financial Technologies India Limited (FTIL), now 63 moons technologies has been under scrutiny for the longest time. The forced merger of FTIL and NSEL and has also been proposed. However, in this case the authority of the Khamanon court was confronted by NSEL. As many as 13 revised petitions were filed in the Punjab and Haryana High Court. Consequently, LOIL group has been ordered by the High Court to pay a fine of Rs. 1 lakh per petition filed by the Exchange.
Further to the order by the High Court of Punjab and Haryana, the proceedings of LOIL in the NSEL case will be entertained in the courts of Mumbai only. The properties and involved executives of the company will face consequences as seen fit by the Economic Offenses Wing (EOW).
This is a positive step for Jignesh Shah and his company. It implies that the investors who lost money in the payment default can hope again for speedy recovery of their funds.