Stories
Supreme Court Rejects MMTC Plea Against NSEL Settlement
N
News18•13-10-2026, 19:45
Supreme Court Rejects MMTC Plea Against NSEL Settlement
- •The Supreme Court dismissed an appeal by state-owned MMTC challenging the NCLAT order that approved a Rs 1,950 crore one-time settlement between NSEL and traders.
- •A bench of Justices P S Narasimha and Alok Aradhe upheld the settlement backed by 63 Moons technologies and approved by over 90 percent of creditors.
- •MMTC had argued that the scheme was prejudicial to public interest and vitiated by fraud, a claim that was rejected by the appellate tribunal and the apex court.
- •Authorities including the Economic Offences Wing and the competent authority under the MPID Act previously stated they had no objection to the proposed scheme.
Key Questions Answered
The Supreme Court dismissed the appeal filed by state-owned trading firm MMTC, upholding the Rs 1,950 crore one-time settlement between National Spot Exchange Ltd (NSEL) and traders.
MMTC challenged the settlement scheme before the NCLAT, claiming that it was prejudicial to public interest, opposed to public policy, and allegedly vitiated by fraud due to wrongly recorded facts.
The NSEL crisis originated in July 2013 when the Department of Consumer Affairs asked the exchange to close out all contracts, aggravating a payments crisis worth over Rs 5,400 crore.
