With discrepancies worth Rs 5600 cr, NSEL crisis not only reduced NSEL into a defunct body, but also unduly brought parent company, 63 moons, to bear for flawed corporate governance. Ever since, multiple government agencies appointed to investigate and catch wrongdoers have either fallen off-track or misled by vested interests.
The most unsettling of verdicts has been the proposed merger between 63 moons and NSEL that forces 63,000 unassuming shareholders to cover for irregularities accrued at NSEL. There has been no explanation whatsoever on this unjust step, which has been issued in “interest of public”. This leaves us with no other explanation but assuming that the Government has been blindfolded, and their faulty system which is making one pay for deeds of others, is on a vacation. Amid setting a baffling example across the globe on handling corporate cases, the Government is also turning a blind eye towards the 63k shareholders.
Ideally, the recourse here should center on recovering dues from real defaulters --the brokers-- who are charged with conflicting investor claims and client complaints, rather than passing verdict of a merger. Do we expect the Government to wake up anytime soon? With new situations unveiling almost every day, there are a few questions that remain unanswered still…
• Is it fair to impose harsh and unjust actions on 63 moons for payment defaults at one of its subsidiaries?
• Is it consistent with the local legislative and legal framework?
• Is it in accordance with the established conventions and practices?
• Is it in the good spirit of domestic and global corporate law?
• Has the regulator | government contemplated similar initiatives for companies that have experienced crisis that are much more grave and serious?
• Why deprive the genuine investors and shareholders of 63moons their due share in the progress of the company?
Reference: ShantanuGuhaRay:(2016): ‘The Target Book’: New Delhi: Publisher: AuthorsUpfront
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