NSEL case: Bombay HC summons P Chidambaram, 2 IAS officers in Rs 10,000 crore damage suit by 63 moons

K.R.Srivats New Delhi | Updated on July 30, 2019

File photo   -  istock/Kuzma

The Bombay High Court has summoned former Finance Minister P Chidambaram and top serving bureaucrats, Ramesh Abhishek and KP Krishnan in the Rs 10,000 crore damage suit filed by 63 moons (formerly Financial Technologies (India) Ltd) with regards to Rs 5,600 crore National Spot Exchange Limited (NSEL) payment crisis matter.

63 moons, which is the parent firm for NSEL, had in June this year slapped this damage suit against these three individuals for their alleged role in creating the NSEL crisis and hatching criminal conspiracy to conjure the fall of the exchange ecosystem created by 63 moons to favour its competitor, the National Stock Exchange (NSE).

Bombay High Court has now asked the three individuals to appear either in person or by an Advocate entitled to practice on October 15, 2019, according to the HC order seen by Business Line.

Ramesh Abhishek is the outgoing Secretary of the Department for Promotion of industry and internal trade (DPIIT). Krishnan is currently working as Secretary in the Ministry of Skill Development and Entrepreneurship.

It may be recalled that Jignesh Shah, mentor of 63 moons, had in February this year announced 63 moons decision to file the Rs 10,000 crore damage suit against former Finance Minister P Chidambaram, then FMC Chairman Ramesh Abhishek, then Additional Secretary in Finance Ministry KP Krishnan for their “proactive role” in engineering the NSEL payment default crisis.

Shah felt that what the then FMC Chairman Abhishek could have solved in five weeks as FMC Chief, has now taken more than five years for the investigative agencies to unravel.

He alleged that the FMC, which later got merged into SEBI, had gone slow on solving it on purpose. “There was a clear dereliction of duty... in selectively targeting the parent company of NSEL despite no money trail to them,” Shah had said in February this year.

63 moons had in the damage suit alleged that the FTIL Group had been singularly targeted as part of a conspiracy by these three individuals who wanted to protect the National Stock Exchange (NSE), the country’s largest bourse, in which they have vested interests.

The malicious actions perpetrated against 63 moons caused a damage of Rs 10,000 crore to its shareholders, it submitted.

Published on July 30, 2019

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