Home >Companies >News >NSEL scam: 63 Moons to move Bombay HC for defreezing accounts
Jignesh Shah, founder and chairman emeritus of 63 Moons, formerly known as FTIL. Photo: Abhijit Bhatlekar/Mint
Jignesh Shah, founder and chairman emeritus of 63 Moons, formerly known as FTIL. Photo: Abhijit Bhatlekar/Mint

NSEL scam: 63 Moons to move Bombay HC for defreezing accounts

63 Moons CEO S. Rajendran says he will appeal to the Bombay high court against the state government's directives to freeze the operating accounts of the company

Mumbai: Jignesh Shah-owned 63 Moons, formerly known as Financial Technologies India Ltd (FTIL), will move the Bombay high court in Mumbai against the state government’s directives to freeze the operating accounts of the company.

The government on 4 April had issued a directive to freeze operating accounts of the company, alleging complaints were received from a number of depositors against the National Spot Exchange (NSEL), owned by 63 Moons, that it had collected money by promising attractive returns but failed to return the deposits when the time for repayment came.

“We will appeal to the Bombay High Court against this, as we cannot pay vendors, our employees salaries, or statutory dues owing to the freezing of these accounts," S. Rajendran, managing director and chief executive officer of 63 Moons said on Wednesday.

In an earlier notification dated 21 September 2016, the government had “clearly mentioned attachment of all Fixed Assets and Investments, and clearly excluded periodical accrued benefits of these investments," a company statement argued.

The economic offences wing (EOW) of Mumbai, through different forums had mentioned that they had secured assets worth approximately Rs8,600 crore as against the outstanding default amount of Rs5,300 crore, the statement claimed. Further, the EOW-Mumbai has already frozen Rs1,800 crore worth of bonds, which the company claims has no link to proceeds of the crime, it added.

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