In October 2014, the Ministry of Corporate Affairs had issued a draft order to merge NSEL with its parent firm 63 moons to ensure faster recovery of dues for entities hit by the Rs 5,600-crore fraud. The years of scrutiny on Jignesh Shah and his company 63 Moons, formerly known as Financial Technologies Limited (FTIL), has capitulated little to no evidence against the aforementioned regarding the NSEL case.
The recommendation of forcefully merging these two companies is a direct assault on the prevailing system of administration of justice in our country. Forced mergers are not a proposition that can be afforded by corporate India.
The premise for proposing it in the first place is misleading as the real solution lies in the recovery from defaulters. It is clearly a case of MCA being led astray due to vested interests and mala fide intentions. Instead of coming up with such inept and obtuse decisions, MCA should focus on ensuring the recovery process from the defaulters in this situation of crisis.
When 63 moons challenged the final merger order issued in February this year, the MCA sought six weeks to respond to it. This raises skepticism in the case.
The New Digital Ecology 