the target book reviews

NSEL-FTIL merger – In the Name of ‘Public Interest’…

I’m sure all of you remember the NSEL case of 2013 that shook the Indian financial markets. Don’t you think, with all the upheaval this case has caused through the years, the focus has slipped away from the core?

Moreover, the order passed by the government to forcibly merge NSEL with its parent, FTIL, actually seems as the last nail in the coffin that could bury the founder of both these companies – Jignesh Shah. I wonder why is the government hell bent on killing FTIL and Jignesh Shah?

I was reading this book, The Target Book, by Shantanu Guha Ray, which talks in detail about the entire NSEL crisis and the story of Jignesh Shah. It feels so good to read about how he built 10 financial exchanges across India & abroad, the kind of efforts he took that benefited our Nation, the governments, and the economy.

A thorough read of the book also brings to light various aspects of a planned conspiracy against Jignesh Shah and how the government used unreasonable orders to destroy his group and ventures. One such order was a merger of two of his companies – NSEL & FTIL.

The government by invoking the provision of Section 396 of the Companies Act intends to serve the public interest, but just ‘how’? That’s a baffling question given that the merger, by piling on accrued liabilities to the tune of Rs.5,600 crore on 63000 FTIL shareholders, defies fiscal equilibrium.

The merger order also raises a very questionable image in front of foreign investors keen to be a part of ‘Make in India’. That ideology sums up the approach of Jignesh Shah, who is widely seen as an example of Make in India, and the entire FTIL fraternity in questioning the move as it evidently hurts the fiscal mobility of FTIL and sets up a strong case of executive overreach.

While the book is an excellent medium to reach those who can bring about justice, in this case, it raises hopes of a fair trial finally.

For more information check The Target Book Reviews.

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