Bombay HC quashes orders attaching NSEL assets

first_imgMumbai: In a major victory for fintech firm 63 moons, the Bombay High Court on Thursday ruled that the National Spot Exchange Ltd (NSEL) is not a financial institution and hence notifications for attachment of the company’s assets, including bank accounts and properties, under the MPID Act stand quashed. The court also declined to stay its order as was requested by the Economic Offences Wing (EoW) of Mumbai Police. “We have considered the arguments of the learned senior counsel appearing on both sides and we are of the express view that on exhaustive discussion, we have already concluded that NSEL is not an ‘financial establishment’ within the purview of the Maharashtra Protection of Interests of Depositors (MPID) in Financial Establishments Act, 1999, and in such circumstances, we decline the prayer made by the learned senior counsel (Rafique) Dada,” the order said. Also Read – Thermal coal import may surpass 200 MT this fiscalIn a statement, the company said: “The Bombay High Court has quashed all the notifications issued by the State Government in the year 2016 and 2018 attaching movable and immovable properties of 63 moons under the MPID Act 1999, by observing that NSEL is not a financial establishment since it did not accept any deposits as defined under the MPID Act and resultantly, the petitioner who is a promoter of the said establishment cannot be proceeded under the provisions of MPID Act.” Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boostAccording to the company, the court noted that despite the forensic audit commissioned by the EOW tracing the entire money trail to the defaulters, the State attached properties of 63 moons which was not legally sustainable. The two-judge bench of Bharati H. Dangre and Ranjit More on Thursday ruled that the Act is not applicable in terms of NSEL as it is not a financial institution. As a result of the order, the assets attached under MPID Act would be released. The company said that it is in the business of developing and selling technology products for facilitating trading on exchanges such as stock and commodity exchanges and claims to have more than 63,000 shareholders and over 800 employees.last_img