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The Corporate Affairs Ministry (MCA) has moved the Bombay High Court seeking two more months time to pass the final order on the proposed merger of scam hit National Spot Exchange Ltd (NSEL) with its parent Financial Technologies (India) Limited (FTIL).
The Bombay High Court had earlier set the deadline at December 31 for the MCA to pass the final order.
If the Bombay High Court agrees (hearing slated for Wednesday) to the latest MCA request and sets the deadline for February 29, then it would be the third such instance when the Government gets an extension to decide on the merger and pass the final order.
It may be recalled that the Government had in October last year come up with a draft merger order that when converted into a final order lead to FTIL assuming liabilities of ₹ 5,600 crore settlement default in NSEL.
FTIL is opposed to the Government’s merger plan as it contends that the forced merger would violate the concept of limited liability, which is the fundamental principle of corporate jurisprudence.
Also, the forced merger of NSEL with FTIL will be without the consent of the stakeholders, including shareholders and creditors, of both the companies, according to FTIL.
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