The Bombay High Court has postponed the hearing of Financial Technologies plea against the Ministry of Corporate Affairs’ petition in the Company Law Board (CLB), to Wednesday. The Ministry had asked CLB to supersede the company’s board.

Interestingly, the Ministry petition is coming up for hearing at Company Law Board in Chennai on Tuesday, a day ahead of the hearing in Bombay High Court.

The Corporate Affairs ministry had filed the petition with CLB on Saturday to replace the entire of FTIL board with government officials due to mismanagement and negligence of the present directors leading to payment crisis of ₹5,600 crore at NSEL.

The Ministry said the company exited its investment in MCX at a loss of ₹290 crore causing financial damage to investors.

With FTIL holding 99.99 per cent shareholding in NSEL and its functioning were tabled before the FTIL board, the company had knowledge of the happenings at NSEL, said the ministry.

Contesting the ministry’s claim, FTIL said the entire allegations of MCA are based on FMC ‘fit and proper’ order which itself is challenged in court of law.

The Ministry said the FTIL Board is attempting to strip assets to thwart the amalgamation process and divert fund from sale of assets. Venkat Chary, Acting Chairman, FTIL, said that the board is competent enough and will seek legal recourse to protect the interest of 63,000 shareholders of the company.

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