NSEL investors to approach FinMin for faster execution of OTS

New Delhi: The NSEL Investors Forum (NIF), which represents a large number of investors of the National Spot Exchange Limited (NSEL), will approach the Finance Ministry seeking faster execution of the one-time settlement (OTS) scheme approved by the NCLT.

Calling the settlement a landmark development, NIF chairman Sharad Saraf said the agreement between NSEL, its parent 63 moons technologies, and investors marked a decisive step after years of prolonged litigation and uncertainty. “This historic settlement is a turning point for investors. It offers a concrete and fair resolution, and we will urge the Finance Ministry to facilitate its early execution,” he said.

Saraf added that the forum remains committed to ensuring that the implementation of the OTS is smooth, transparent and completed without delay. The NIF has decided to approach the Finance Ministry to ensure that procedural clearances are expedited so that payments to investors can be made at the earliest.

Earlier this month, the Mumbai bench of the NCLT approved the OTS scheme between NSEL and the NIF. Under the settlement, Rs 1,950 crore will be paid to 5,682 traders in proportion to their outstanding dues as on July 31, 2024. In return, all legal proceedings against the group will be withdrawn and the traders’ rights will be assigned in favour of 63 moons.

The tribunal described the scheme as fair and reasonable, observing that it does not violate any provision of law and is not contrary to public policy. The proposal had received overwhelming backing during the NCLT-mandated voting process, with 92.81 per cent of traders by number and 91.35 per cent by value voting in favour of it.

Saraf acknowledged the support extended by NSEL and 63 moons technologies in facilitating the settlement, despite there being no money trail linking NSEL, 63 moons or their promoters to the original defaults. He said investors were hopeful the settlement would serve as a template for resolving similar disputes in the country.

He also thanked the central and Maharashtra governments, as well as investigating agencies, for supporting the OTS process. “With the NCLT approval, we are a step closer to closure. It is now only a matter of time before investors receive the settlement amount,” Saraf said.

The OTS applies to investors with claims exceeding Rs 10 lakh, as those with smaller dues have already been paid. Around Rs 750 crore has been disbursed so far across categories, largely through NSEL’s recovery efforts.

Once implemented, the settlement will result in payouts ranging from 49.3 per cent to 64 per cent of investors’ claims, an outcome described as unprecedented in similar cases. Agencies