The Government has invoked Section 397 of the Companies Act and proposed to take over the FTIL Board which is the management that runs all the operations of its ventures. In the aftermath of the NSEL crisis, the Government’s moves were expected. But this I think is drastic and unnecessary.
As an aspiring law student, this is a historic case for most of us and we are all eagerly awaiting the verdict of this case. But, since I always believe FTIL is being mistreated, I think the Government is just trying to remove all the road blocks that ensure that they can merge NSEL with FTIL. If the board of management is taken over by the Government, then the first thing that will happen is the Government will try to stop all the cases challenging the merger. As a result, the Government will have its way and the merger will take place, allowing the other cases to fall flat and against FTIL. For example, the unproved liability of Rs 5600 cr, if not challenged will fall on NSEL and consequently on FTIL. So, Jignesh Shah’s 10 years of efforts will be wiped in one go. Is it fair to this man who was once known the Czar of Exchanges?
I don’t think so! I read Shantanu Guha Ray’s ‘The Target Book’ and realised that he has written my points and thoughts about the NSEL case. Just a little more in detail! It is a must read!
For more information check The Target Book Reviews.