However, his vision and approach was crushed by a few powerful and how the government used unreasonable orders to destroy his group and ventures. One such order was merger of two of his companies – NSEL & FTIL.
The matter of NSEL and FTIL has wreaked havoc in the financial market, where the search for the right solution hasn’t ceased yet. Apparently the Merger is pointless from the outset and the focus on recovery is critically lacking in the case. It is a matter of fact that the Ministry of Corporate Affairs (MCA) has the power to compulsory merge two government companies only with consent of the majority shareholders. Neither of the companies falls in the government company’s category in this case and the opposition by 80% shareholders in the merger decision has been overlooked by MCA.
The decision to merge NSEL into its promoter, Financial Technologies Ltd. violates the norms of the Companies Act, section 396 which states that the “Power to provide for amalgamation of companies in public interest”. Apart from being a ‘not-a-public-interest-litigation’, the merger is against the Indian law and order.
May Justice Prevail!
For more information check The Target Book Reviews.