The NSEL Investors Forum has written a letter to the Maharashtra Chief Minister Devendra Fadnavis seeking his intervention to execute the one-time settlement proposed by the exchange and brokers.
With the next hearing of the proposed one-time settlement case in NCLT slated for July 11, the Forum has urged the Chief Minister to issue necessary directions to the relevant state authorities not to take any hasty negative steps, which might derail and delay the proposal at the NCLT.
“Any dissent or negative response from the State/Competent Authority/ EOW in the NCLT might derail or delay the settlement process. Such negative response from state authorities to the NCLT might also be perceived as against the interest and welfare of the investors,” it said.
For nearly 12 years investors have been waiting for the receipt of their lost monies due to settlement default on the exchange.
After a series of deliberations and discussions between the Members of NIF, representatives of NSEL, a consensus was arrived for one-time settlement of ₹1,950 crore, said the letter.
While the recovery under Insolvency and Bankruptcy Code has been only 10-20 per cent, the recovery under one-time settlement is about 48 per cent.
In February, NSEL and investors filed a formal application with NCLT which ordered postal ballot on the proposal by investors. Subsequently, the Report of Scrutinizer appointed by NCLT has confirmed that 92.81 per cent of investors in number, representing 91.35 per cent in value, have voted in favour of One Time Settlement, said the letter.
Company petition
A company petition has now been filed by NSEL before the NCLT and will be heard on July 11.
The One Time Settlement would result in the remaining investors receiving money in a finite period and bringing a long-awaited resolution of the matter. This Scheme marks a breakthrough in securing financial justice for investors, who have endured a decade-long waiting for their dues, said the letter.