MCA seeking extension of time to defend its own case shows its uncertainty and ambiguity
The forced merger of Financial Technologies (India) Ltd (FTIL) case and NSEL seems nothing more than an irrational and naïve decision on the part of the Ministry of Corporate Affairs (MCA) in its attempt to abide by the suggestion of Forward Markets Commission’s (FMC) to merge both the companies.
Merger is clearly not the solution in the case as it is apparent that vested interests and mala fide intensions are misleading MCA. It is undoubtedly an inept decision which involves levying of ill-proportioned and unfair punishment of merging the promoter, FTIL and its subsidiary, NSEL.
The application of the ministry to the Bombay high court seeking six weeks’ time to respond to Financial Technologies’ challenge of final merger order issued in February this year shows that it is dragging its feet on its own order in this case. Despite having over a year to prepare, MCA has been continuously seeking extension of time in filling of affidavit to defend its own case. It is high time now that the concerned authorities should not turn a blind eye towards the adverse consequences of this obtuse decision as it will open out an easy escape route for the real defaulters to get off.
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