NCLAT Upholds NSEL Settlement Amidst Fraud Allegations
The National Company Law Appellate Tribunal (NCLAT) dismissed MMTC's appeal against NSEL's settlement with traders, backing the National Company Law Tribunal's 2025 approval. Despite MMTC's fraud claims, NCLAT confirmed the scheme's creditor support and adherence to legal processes, emphasizing no appeal by enforcement agencies. NSEL's crisis dates back to 2013.
- Country:
- India
The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by state-owned trading firm MMTC against the one-time settlement (OTS) between National Spot Exchange Ltd (NSEL) and its traders.
NCLAT upheld the Mumbai bench of the National Company Law Tribunal's decision approving the Rs 1,950-crore settlement scheme, which was earlier supported by the Supreme Court.
MMTC alleged fraudulent activities; however, over 90 percent of creditors supported the scheme and no enforcement authorities challenged it, highlighting long-standing financial complexities since 2013.
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