MMTC to get three weeks notice before any liquidation of Jignesh Shah's Financial Technologies shares

Dec 17 2013, 08:56 IST
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NSEL scam: MMTC, NSEL promoters agree on 3-week notice before asset liquidation NSEL scam: MMTC, NSEL promoters agree on 3-week notice before asset liquidation
SummaryNSEL scam: MMTC, NSEL promoters agree on 3-week notice before asset liquidation

At a Bombay High Court hearing of a case filed by MMTC and PEC against the National Spot Exchange (NSEL), both sides  have agreed to a three week notice before liquidation of certain assets held by NSEL promoters - Financial Technologies (FTIL) and Jignesh Shah.

The said assets will include Shah's direct holding in FTIL, his indirect holding in FTIL through LaFin Financial Services and the FT Tower -- the office building of FTIL -- including the land on which it is built. During this period, the petitioners are allowed to move court against the sale.

Further hearing on the recovery suit filed by public sector companies in the Bombay High Court against NSEL, Financial Technologies (FTIL) and 34 other entities has been postponed to January 21, 2013.The suit  seeks to hold FTIL - the promoter of NSEL - along with its founder Jignesh Shah accountable for the NSEL crisis. MMTC is seeking to block the liquidation of any assets by both, FTIL and Shah.

The bench meanwhile rejected the petitioners request that three week notice be made applicable to all assets of FTIL, including investments in debentures and mutual funds. With this outcome, the petitioners' demand that the  proceeds of $150 million from the sale of SMX, another subsidiary of FTIL, be set aside as a security against their outstanding was also not met. The collective dues of MMTC and PEC stand at close to Rs 343 crore.

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