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Financial Technologies (India) is seeking legal advice on the order of the city police’s economic offences wing which restrains its use of asset sale proceeds for any purpose other than legal expenses and salaries of employees. It said so to the BSE exchange.
The order came in a development on the probe into the payments default at its subsidiary, National Spot Exchange (NSEL).
Its reponse to the order adds: “FTIL had received Rs 84 crore from NSEL but this is towards technology software, software maintenance and support services rendered by FTIL and not the so-called Investors’ money. Further, without prejudice to its rights and contention, besides investment of Rs 57 crore as equity share capital in NSEL, FTIL has provided to NSEL Rs 179.4 crore as a bridge loan, which has been utilised by NSEL for paying small investors in full whose dues were up to Rs 200,000, and 50 per cent of the amount to those whose dues were between Rs 2 lakh and Rs 10 lakh.”
EOW further asked FTIL not to dispose of, alienate, encumber, part with possession of or create any third party right, title and/or interest in, to, upon or in respect of any asset, including that of its subsidiaries, except for payment of statutory dues, maintenance of assets and wages and salaries.
