NCLT Clears ₹1,950-Crore Settlement for NSEL Investors; Over 5,600 Investors Set to Be Compensated

After more than 12 years of legal proceedings following the 2013 ₹5,400 crore default, the National Company Law Tribunal (NCLT) (Mumbai Bench) has approved a ₹1,950 crore one-time settlement scheme presented by National Spot Exchange Limited (NSEL) to compensate over 5,600 affected investors, the Bar and Bench reported. 

Tribunal Clears ₹1,950 Crore Settlement to Resolve 2013 Default 

On December 1, 2025, the NCLT approved the composite scheme of arrangement proposed by NSEL. The scheme, backed by 91.35% creditor consent by value and 92% by number, aims to settle long-pending claims due to the exchange’s trading suspension in July 2013.  

The default originated when 24 members failed to honour pay-in obligations, leading to a shortfall of ₹5,402.71 crore. 

The scheme was formulated after discussions between NSEL, its holding company 63 Moons Technologies, and the NSEL Investors Forum (NIF).  

Under this resolution, ₹1,950 crore will be placed in an escrow account supervised by retired Justice S C Gupte, appointed as the monitoring authority. Creditors will be paid according to the terms defined in the scheme. 

Major Creditor Support and Legal Compliance Enable Approval 

The Boards of NSEL and 63 Moons approved the scheme on February 18, 2025. Subsequent voting through postal ballot and e-voting from April 17 to May 17, 2025, yielded overwhelming support. As per NIF’s data, 3,088 creditors with claims worth ₹2,951.85 crore (64.11% of total value) gave consent. 

Despite objections filed by the Enforcement Directorate, SFIO, and others, the NCLT concluded that statutory procedures under Sections 230 to 232 of the Companies Act were properly followed.  

The tribunal clarified the civil claims would be assigned to 63 Moons post-settlement, while criminal proceedings initiated by state authorities and agencies will continue independently. 

Read More: Voltas Share Price in Focus as NCLAT Upholds NCLT Decision and Declines Insolvency Plea Against Voltas! 

Recovery Framework and Creditor Payout Mechanism 

The scheme ensures a structured pay-out process through escrow. Once disbursement is complete, 63 Moons Technologies assumes all rights of the settled creditors, including involvement in legal proceedings for recovery.  

Earlier recovery mechanisms like the 30-week settlement plan and internal guarantee funds had limited success, further validating the need for this consolidated resolution strategy. 

Conclusion 

The approval of NSEL’s ₹1,950 crore one-time settlement scheme by the NCLT marks a significant milestone. It finalises a structured resolution for thousands of investors impacted by the 2013 default, while allowing criminal investigations and proceedings to run their due course. 

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