The Supreme Court on Tuesday rejected MMTC Ltd's challenge to the ₹1,950 crore settlement scheme for resolving creditors' claims arising from the NSEL payment default. A Bench of Justices PS Narasimha and Alok Aradhe dismissed the appeal against a March 30 judgment of the NCLAT, which had upheld the scheme sanctioned by the NCLT, Mumbai on November 28, 2025. MMTC had argued that the arrangement was against public interest and public policy, but the NCLAT noted that the proposal had secured the support of more than 90 per cent of creditors. The appellate tribunal also observed that MMTC, despite voting against the scheme in May 2025, had not raised objections before the NCLT while the approval proceedings were underway.
A special Prevention of Money Laundering Act (PMLA) court in Mumbai has permitted the monetisation of assets worth ₹3,464 crore attached by the Enforcement Directorate (ED) in the National Spot Exchange Ltd (NSEL) case. According to the latest reports from the ED, the court issued the order on October 8, allowing the attached properties to be monetised with the proceeds used to implement the one-time settlement approved by the National Company Law Tribunal (NCLT). The court's decision represents a significant step towards providing restitution to investors who have been awaiting recovery for 13 years since the 2013 payment default.
The settlement scheme, sanctioned by the NCLT on November 28, 2025, under Sections 230-232 of the Companies Act, 2013, provides for a minimum recovery of around 42 per cent of verified claims for the 5,682 creditors covered by it. As reported by the ED, more than 92 per cent of the creditors approved the scheme, which was approved by over 92 per cent of the creditors and assures each of them a minimum recovery of about 42 per cent of their verified claims. The National Company Law Appellate Tribunal dismissed a challenge to the approval on January 15, 2026, and the Supreme Court subsequently upheld that decision on March 9, 2026. On April 13, the Supreme Court directed courts and authorities to pass appropriate orders expeditiously to implement the scheme.
Since several of the attached properties are also subject to attachment under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999, the ED will carry out the monetisation in consultation with the competent authority under the state law. As reported by the ED, the agency will consult with the Competent Authority created under the MPID Act for monetisation, as many properties are also attached under this Act. Up to ₹1,950 crore from the monetisation will be paid to 63 Moons Technologies Ltd, acting as the assignee of the specified creditors, after the occurrence of the trigger event defined under the approved scheme. The special court will decide the fate of the remaining assets at a later stage, with any proceeds exceeding ₹1,950 crore remaining in the custody of the special court, subject to the final outcome of the proceedings.
The NSEL crisis dates back to 2013, when payment defaults left around 13,000 investors facing outstanding dues of approximately ₹5,600 crore. According to the ED, the charges alleged that trading occurred in commodities without actual underlying stocks and the resulting payment default affected about 13,000 investors, with outstanding dues of ₹5,600 crore. An FIR was registered at Mumbai's M R A Marg police station against the exchange's platform provider, its directors and key officials, 25 defaulting members and others over allegations of criminal conspiracy, cheating, criminal breach of trust and forgery. The ED subsequently initiated proceedings under the PMLA and issued 35 provisional attachment orders covering assets worth approximately ₹3,464.03 crore since filing the case in 2015.
