63 moons wins MPID case in Bombay HC; Court rules NSEL is not a financial establishment

Jignesh Shah and 63 Moons got their day in the court and won a critical battle. The Bombay High Court (HC) today ruled that the National Spot Exchange Ltd (NSEL), is not a financial establishment and hence notifications for attachment of the company’s assets including bank accounts and properties under the MPID Act stand quashed. The Competent Authority requested a stay. However, Hon. High Court declined.

Why was this critical?

In an administrative overreach (according to the HC), the Maharashtra Protection of Interest of Depositors (MPID) act was applied to NSEL, which is not a financial institution. MPID act applies only to financial institutions and NSEL was a commodities exchange where commodities were traded between willing buyers and sellers. 63 Moons had maintained all along that this act was not applicable to NSEL and their stand is vindicated today by the HC result. This means that all the assets of 63 Moons that were attached will now have to be released.

NSEL never accepted deposits

In its judgment, the HC bench of Justices Ranjeet More and Bharati Dangre observed that NSEL has not accepted any deposit and if it has not accepted any deposit, then it would not fall within the definition of a ‘financial establishment’. The court went through the various by-laws of NSEL before coming to this conclusion.

Another Dubious act by Chidambaram?

Actions (such as applying the MPID act) were undertaken based on the recommendations of the hastily assembled committee headed by Arvind Mayaram, when P Chidambaram was the Finance Minister. At that time, the Maharashtra Government was under Congress. The reasons for why Chidambaram targeted Jignesh Shah and his group of companies is explained in great detail in my series C-Company[1]. It is high time this government acted against many of the C-Company minions who are clinging on to their posts and putting blocks in its way to get to the truth.

Here is a copy of the 63 Moons Press Release:

63 Moons Wins MPID Case by PGurus on Scribd

References:

[1] Questions ED and CBI should be asking of C-Company minions – Jul 12, 2018, PGurus.com