MCA blind-folded towards real defaulters

The forcible merger of NSEL into its promoter, Financial Technologies (India) Ltd (FTIL) has evoked a huge response and quivered the pillars of the prevailing system of administration of justice.
The case of FTIL promoting NSEL and being merged together for bearing the latter’s responsibilities, is against the Indian law and order apart from being a not-a-public-interest-litigation. The authenticity of 13,000 alleged trading clients is still under investigation and the proposal of the merger in-between the inquiry process is undoubtedly a premature decision taken by the Government. Clearly, the Forward Markets Commission (FMC) which has been appointed by the Ministry of Corporate Affairs (MCA) has levied ill-proportioned and unfair punishment of merging the promoter, FTIL and its subsidiary, NSEL with this improvident decision, and that too without investigating the real trade players and their genuineness. It seems like MCA is washing its hands off the real defaulters through this merger. The implausibility and ambiguity of MCA is clearly evident from its application to seek six weeks’ time to respond to Financial Technologies’ challenge of final merger order issued in February this year. The ministry seems to be uncertain about its own decision and is continuously seeking extension of time in filling of affidavit to defend its case despite having over a year to prepare for the same.
Merger is clearly not the solution in this case and is a digression from the real issue. The premise for proposing it in the first place is misleading as the real solution lies in the recovery from defaulters. Instead of proposing an irrational merger, the concerned authorities should have focused on the recovery of the dues from the real defaulters. It is a complete failure on their part to realize that this hogwash will open an easy escape route for real DEFAULTERS to get off.

Rohan Mehra
About Rohan Mehra (67 Articles)
An avid sports lover and former zonal-level cricket player, Rohan Mehra is amongst the most popular sports bloggers based in Delhi. His childhood passion for sports turned into a full-time blog writing profession. For him, blogging is not just limited to writing for the readers, but he personally takes pleasure in what he does, which is well-reflected in his blogs. Follow him for all the recent updates and trending topics in sports.

2 Comments on MCA blind-folded towards real defaulters

  1. Vinilsingh // June 24, 2016 at 4:49 am // Reply

    Implementing such an obtuse decision is clearly a violation of law and order which is completely unjustified.

  2. jai bhandari // July 21, 2016 at 11:34 am // Reply

    I really don’t understand that despite so many reasons the concerned authorities cannot figure out that merger will put an end to this crisis- situation.


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