PMLA Appellate Tribunal also releases assets of 63 moons from ED attachment

The PMLA Appellate Tribunal on Tuesday released the assets of Jignesh Shah-led 63 moons technologies from attachment by the Enforcement Directorate (ED).

This order comes soon after the Bombay High Court order which quashed the attachments of assets belonging to 63 moons — earlier known as National Spot Exchange Ltd (NSEL) — under the Maharashtra Protection of Interest of Depositors (MPID) Act.

However, the tribunal made quashing the attachment orders subject to the filing of an indemnity bond within a week. It restrained 63 moons from dealing with released assets till the pendency of the trial of larger issues in the PMLA court.

63 moons said it is of the opinion that passing of this sort of restraint order and of seeking an indemnity bond is beyond the power of the tribunal under the Prevention of Money Laundering Act 2002 (PMLA). “63 moons will take appropriate legal recourse against this part of the order,” it said in a statement.

Last month, the court ruled that the NSEL is not a financial establishment and hence notifications for attachment of the company’s assets, including bank accounts and properties, under the MPID Act stand quashed.

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.

The developments followed Shah’s arrest by Enforcement Directorate in connection with the Rs 6,000 crore scam at NSEL which is owned by FTIL. The ED said it had collected evidence of money-laundering against Shah, and he was remanded in judicial custody by a special PMLA court.

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