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Mumbai NCLT Admits NSEL’s ₹1,950 Crore Settlement Plan; Investors Urge CM Fadnavis’s Support

The forum is calling on state authorities to avert objections through appointment of a corporate law expert for the July 11 hearing

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Overview

  • NSEL and parent 63 Moons filed the one-time settlement under the Companies Act, and the Mumbai NCLT admitted the petition with a final hearing set for July 11.
  • The NSEL Investors Forum wrote to Chief Minister Devendra Fadnavis on June 19, warning that any adverse input from state agencies or the Enforcement Directorate could derail the process.
  • Under the scheme, ₹1,950 crore will be held in escrow and distributed among 5,682 traders in proportion to their outstanding dues as of July 31, 2024.
  • The settlement proposal secured over 90% approval in a postal ballot led by the Investors Forum, reflecting broad consensus after nearly 12 years of stalled recovery efforts.
  • An earlier relief in August 2013 disbursed ₹179 crore to smaller traders, but insolvency routes since then have yielded only 10–20% recoveries, making this plan the most substantial offer to date.