Centre seeks more time to pass FTIL-NSEL final merger order

MUMBAI: The government has sought yet another extension from the Bombay High Court (HC) for passing a final order to merge scam-hit National Spot Exchange with its parent Financial Technologies India, or FTIL.

The Union of India has filed a chamber summons in the HC seeking an extension up to February 29, 2016, to pass a final order, government’s advocate Jay Bhatia confirmed to ET. He added that he would move the chamber summons (for hearing) either on Tuesday or a day later. Justice SC Dharmadhikari & Justice BP Colabawalla will hear the application.

"The officer who headed the committee that heard the objections of FTIL and NSEL (in October) against the merger underwent a heart surgery thereafter and has not been able to attend office. He is on leave till Dec 31 and given this the Union has requested (the HC) for more time to pass the order," Bhatia said.



The development was met with disappointment by NSEL Aggrieved and Recovery Association (Naara) comprising over a 1,000 investors hit by the Rs 5,600 crore scam that surfaced on NSEL in July 2013. "We are extremely upset at the delay because other civil action such as piercing of the corporate veil has not been heard by the Bombay HC over the past 14 months owing to the fact that the Union was to take a final call on the merger (NSEL with FTIL) under Sec 396 (of the Companies Act, 1956)," said a trustee of Naara.