NCLT sanctions Rs 1,950 crore one-time-settlement for NSEL traders

A Bench comprising judicial member Sushil Mahadeorao Kochey and technical member Prabhat Kumar held that the settlement scheme complies with legal requirements and is “not contrary to public policy.”

“The scheme appears to be fair and reasonable, and is not in violation of any provisions of law,” the order stated, after reviewing submissions from the companies and reports from relevant regulators.

Under the plan, ₹1,950 crore will be distributed to 5,682 traders in proportion to their outstanding dues as of July 31, 2024. In return, traders must withdraw all legal proceedings against NSEL, 63 Moons Technologies, and related entities, and assign their rights to 63 Moons.

The proposal, filed by NSEL with support from its parent 63 Moons Technologies, was approved by 92.81% of traders by number and 91.35% by value during the tribunal-led voting process.

Payments will be channelled through an escrow account managed by Universal Trusteeship Services Ltd., under the oversight of former judge S.C. Gupte. Claims below ₹10 lakh have already been settled, and partial payouts have been made earlier to claimants in the ₹10–20 lakh bracket.

NSEL and 63 Moons had previously paid about ₹179 crore in August 2013 to settle dues of more than 7,000 small traders. The new settlement is expected to provide final relief to investors affected by the NSEL payment crisis of July 2013.

NSEL CEO Neeraj Sharma welcomed the tribunal’s approval, crediting cooperation from Central and State governments in bringing closure to the long-running dispute. Sharad Kumar Saraf, chairman of the NSEL Investors’ Forum, also expressed appreciation for the efforts of NSEL and 63 Moons.

NSEL has been directed to submit the certified order and the sanctioned scheme to the Registrar of Companies and the Superintendent of Stamps within the prescribed timeframe.