A Special PMLA court in Mumbai has permitted the Directorate of Enforcement (ED) to monetise properties worth ₹3,464 crore attached in the National Spot Exchange Limited (NSEL) scam case, paving the way for a ₹1,950 crore one-time settlement to be paid to 5,682 specified creditors — investors who have waited more than 13 years for relief since the payment default of 2013. The court order, dated 8 October 2025, follows a settlement scheme sanctioned by the National Company Law Tribunal (NCLT) and upheld all the way up to the Supreme Court.

What the Court Order Provides

Under the restoration order, proceeds of up to ₹1,950 crore realised from the monetisation of Prevention of Money Laundering Act (PMLA)-attached properties will be paid to 63 Moons Technologies Ltd., acting as assignee of the specified creditors, once the Settlement Trigger Event defined in the NCLT-approved scheme is met. Any amount recovered beyond ₹1,950 crore will remain in the custody of the Special Court, subject to the final outcome of the ongoing proceedings.

The ED has issued 35 provisional attachment orders covering assets valued at approximately ₹3,464.03 crore in this case. It also gave its no-objection to this arrangement to facilitate early restitution to investors, according to an official statement.

The MPID Act Complication

Several of the attached properties are simultaneously attached under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act). As a result, the ED will carry out the monetisation in consultation with the competent authority under the MPID Act to ensure legal compliance and avoid jurisdictional conflicts in the liquidation process.

Background: The NSEL Scam and 13-Year Wait

An FIR was first registered in the NSEL case in 2013 at M.R.A. Marg Police Station, Mumbai, and later transferred to the Economic Offences Wing of the Mumbai Police. The case was lodged against the platform provider, its directors, key officials, 25 defaulting members, and others, on charges of criminal conspiracy, cheating, criminal breach of trust, and forgery. Investigators alleged that trading was allowed in commodities without actual underlying stocks, triggering a payment default that affected approximately 13,000 investors with outstanding dues of around ₹5,600 crore.

The ED subsequently registered an Enforcement Case Information Report (ECIR) and investigated the matter under the Prevention of Money Laundering Act, 2002, filing prosecution complaints — including supplementary ones — before the Special Court.

NCLT Scheme and Supreme Court Backing

On 28 November 2025, the NCLT Mumbai sanctioned a Scheme of Arrangement under Sections 230–232 of the Companies Act, 2013, providing the one-time settlement of ₹1,950 crore for 5,682 specified creditors. The scheme was endorsed by over 92 per cent of creditors and assures each a minimum recovery of about 42 per cent of their verified claims. The National Company Law Appellate Tribunal (NCLAT) dismissed a challenge to the sanction on 15 January 2026, and a subsequent appeal before the Supreme Court was also dismissed. On 13 April, the Supreme Court directed all courts and authorities to pass appropriate orders expeditiously to implement the scheme, reinforcing the urgency of paying entitled investors.

With the Special Court's monetisation order now in place, the long-delayed recovery process for NSEL victims is, at least formally, on track — though the actual pace of asset liquidation will determine how quickly funds reach creditors.