Who says the FTIL- NSEL merger is in public interest?

the target book reviews

I recently started reading this book, which a friend suggested would help me in my project on Indian corporate governance.

Titled – The Target Book, by ShantanuGuha Ray, this book, which I request all of you to read brings to light how a true ‘Made in India’ story was destroyed by our very own politicians and bureaucrats. It was their unholy nexus that influenced or rather dictated market regulators to slap unreasonable orders on Jignesh Shah, who is the central character of the book.

One such order was a merger of two of his companies – NSEL & FTIL in the name of public interest. Section 396 of the Companies Act brings to our notice that “the Central Government holds power to provide for amalgamation of companies in public interest.” However the merger between NSEL

Section 396 of the Companies Act brings to our notice that “the Central Government holds power to provide for amalgamation of companies in public interest.” However, the merger between NSELFTIL seems to be unfit in that regard and does reek of elements of executive overreach. The merger is an unfair call on the part of 63000 shareholders of FTIL, keeping in mind the limited liability statute. Why should FTIL be forced to cough up for defaulters in NSEL case?

On researching this further, I realized that even the MCA could not deliver a strong reason or evidence on why this merger should happen. In real terms, FTIL is a limited liability organization which means it’s legally responsible only for its own debts to the extent of the amount of capital being invested.

I really appreciate the author’s efforts to explain such concepts in simple words, but I hope they reach the right ears and justice is brought about. Seems to be unfit in that regard and does reek of elements of executive overreach. The merger is an unfair call on the part of 63000 shareholders of FTIL, keeping in mind the limited liability statute. Why should FTIL be forced to cough up for defaulters in NSEL case?

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One thought on “Who says the FTIL- NSEL merger is in public interest?

  1. Shekhar Verma says:

    After reading this book I have started wondering why would some people gang up to destroy a vision as big as empowering rural India, specially farmers? Hope the book brings about justice to all those affected.

    Like

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