63 Moons, NSEL Investor Forum To Appoint Monitoring Authority For Rs 1,950-Crore Settlement
The NIF, NSEL, and 63 Moons reached a consensus—a Rs 1,950 crore payout in exchange for investors assigning their claims against defaulters and others in favour of 63 Moons.
After more than a decade of legal battle, the crisis involving National Spot Exchange Ltd. could be headed for a closure. 63 Moons Technologies Ltd., the promoter of now-defunct NSEL, and the NSEL Investor Forum would be setting up an Escrow Agent and Monitoring Authority to oversee the Rs 1,950-crore settlement.
"To ensure interest of investors are protected, an Escrow Agent and Monitoring Authority will be appointed to oversee the disbursement of funds to investors," according to a release issued by NIF on Thursday.
Notably, NIF had brokered a Rs 1,950 crore one-time settlement with 63 Moons, offering relief to thousands of investors who have been waiting since 2013 for their dues.
The NSEL crisis dates back to August 2013, when 24 defaulters on the exchange defaulted their payments, leaving thousands of investors in limbo.
Over the years, despite multiple legal proceedings and government interventions, efforts for recovery from the defaulters have yielded disappointing results. While smaller investors—over 7,000 with claims up to Rs 10 lakh—were fully compensated through a Rs 179-crore relief provided by 63 Moons in 2013, larger investors had little success.
For nearly 5,600 investors with claims exceeding Rs 10 lakh, the recovery process has been painfully slow, with only 7% of their dues recovered over 11 years. This led to growing frustration, pushing the NIF to find an alternative solution.
After a year-long negotiation process, the NIF, NSEL, and 63 Moons reached a consensus—a full and final Rs 1,950 crore payout in exchange for investors assigning their claims against defaulters and others in favour of 63 Moons.
"This historic settlement is a turning point for all investors. It offers a concrete and fair resolution after years of legal battles and uncertainty. We appreciate the cooperation of NSEL and 63 Moons in making this possible, and we are hopeful that this will set a precedent for resolving similar disputes across India," said Sharad Saraf, the chairman of NIF.
Investors, though taking a haircut on their original claims, now have certainty of recovery, while 63 Moons will finally be free from legal entanglements, as per the release. The deal received strong backing from the majority of investors both in number and value, signaling a clear preference for peace over prolonged legal battles.
