Shah’s 63 Moons to take legal action against freezing of operational A/Cs
Wearing a black ribbon on their sleeves and name tag of the company on their chests, around 600 employees of 63 Moons (formerly Financial Technologies) gathered at Azad Maiden. This solidarity was to protest against the directives of t he Economic Offenses Wing (EOW) Mumbai, to freeze the operating accounts of the company.
Speaking to Free Press Journal, S Rajendran, managing director and chief executive officer of 63 Moons said, “We will move the Bombay High court against this directives tomorrow.” He added it never happens that the future incomes of a full-functioning company is attached. Rajendran added that the company has not seen the notifications yet but are taking the necessary action before it impacts them in a big way. “There will be implications but nothing will happen immediately,” he added.
After holding the protest, the company’s employees made representation to the Commissioner Office, Mumbai and Chief Minister’s Office. 63 Moon, is Jignesh Shah-promoted entity, has been under investigative agencies’ scanner since 2013. This was after its subsidiary National Spot Exchange Limited (NSEL) failed to settle trades worth Rs 5,600 crore.
EOW has attached three accounts of the company and is also proposing to attach the intellectual property rights of ODIN. The company’s 50 per cent operating revenue comes from ODIN. According to EOW's latest directive, the revenue generated from clients of ODIN will also be put in an escrow account. Already, most of the assets of the company which is worth Rs 8,600 crore, is attached in NSEL case. In addition, in 2016 order clearly mentions that attachment of assets excludes periodically accrued benefits from investments. The company is not in the position to borrow, but is awaiting revenues to flow from their existing customers as the year just ended. “We will have to open new accounts. But we would not have access to existing balance.”
The company employs more than 1,000 employees and has 200 vendors. Adding to it, Mehmood Vaid, Senior Vice 63 Moons open for
arbitrations and financial implications MUMBAI: 63 moons is ready to sit down with all the stakeholders in the NSEL case including brokers, authorities etc and settle this prolonging NSEL case, stated 63 moons Chairman Venkat Chary. During the press conference in the financial city, Chary said, “We can pay a sum and sort this issue out.” He added that the company has tried to have an arbitration in the past but no one is interested. “This case is impacting us and our business that wants to function legally.” He strongly believes that dispute resolution is required.
President at the company said, “Earlier, our vendors still worked with us but now they are worried about their payments too.”
Vaid added that the company has faced serious loss of opportunities. “Now, we are finding it difficult to hold on to the existing customers.”