SC sets aside Bombay HC's order, upholds Maharashtra govt's decision to attach properties of 63 Moons Technologies

The Supreme Court on Friday set aside the Bombay High Court order and upheld the decision of the Maharashtra government to attach properties of company 63 Moons Technologies.

A detailed order is awaited.

A bench headed by Justice DY Chandrachud set aside the Bombay High Court order, which quashed the notifications issued by the state government for attaching movable and immovable properties of 63 moons under the Maharashtra Protection of Interest of Depositors (MPID).

The Bombay High Court had earlier ruled that the National Spot Exchange Ltd (NSEL) is not a financial establishment and hence notifications for attachment of the company's assets including bank accounts and properties under the Maharashtra Protection of Interest of Depositors (MPID) Act stand quashed.

The Bombay HC had quashed all the notifications issued by the state government in 2016 and 2018 attaching movable and immovable properties of 63 moons under the MPID Act 1999 by observing that NSEL is not a financial establishment since it did not accept any deposits as defined under the MPID Act.

In 2016, the Economic Offences Wing of Mumbai police attached assets worth Rs 7,063 crore belonging to Financial Technologies India Ltd (FTIL) owned and founded by Jignesh Shah.