National Law Tribunal asks ministry to set up panel to oversee FTIL asset sale

NEW DELHI: The National Company Law Tribunal (NCLT) has asked the corporate affairs ministry to set up a five-member committee to oversee the asset sale of Financial Technologies ( India) Ltd (FTIL).

The committee will comprise the managing director of FTIL, two independent directors of the company, a retired judge of the Supreme Court and an NCLT nominee. In its order, the NCLT said the committee will have the power to decide on the sale of investments held by FTIL.

It will also decide how the money received from the sale would be used. The government has already passed an order for the merger of scam-hit National Spot Exchange Ltd (NSEL) with parent FTIL. The corporate affairs ministry had moved the erstwhile Company Law Board (now NCLT) seeking the removal and supersession of the FTIL board under the Companies Act, 1956. The decision on the removal of FTIL board is yet to be taken by NCLT.