The Special PMLA Court in Mumbai has made a significant decision aimed at assisting investors in the National Spot Exchange Limited (NSEL) case. The court has permitted the sale of assets seized by the Enforcement Directorate (ED) for a total value of approximately 3464 crore rupees. These funds will be used to repay debts, with an initial tranche of 1950 crore rupees being disbursed to investors.
This order was issued by the court on October 8, 2026, under M.A. No. 169/2026 in PMLA Special Case No. 4/2015. This decision has provided hope to investors who have been awaiting the return of their funds for nearly 13 years following the payment default in 2013.
According to the court's ruling, the maximum amount of 1950 crore rupees obtained from the asset sale will be transferred to 63 Moons Technologies Limited. This company will receive the funds as a representative of the concerned creditors, i.e., the investors. The disbursement will occur after fulfilling the conditions set out in the settlement scheme approved by the National Company Law Tribunal (NCLT).
Under this scheme, the 1950 crore rupees are to be distributed among 5682 identified creditors. However, since many of the seized assets are also under attachment according to the Maharashtra Depositor Protection Act (MPID Act), 1999, the ED will proceed with the sale process after consulting with the relevant competent authority.
The ED has expressed its agreement with this scheme to expedite the relief for investors. The court also clarified that if more than 1950 crore rupees is realized from the asset sale, the surplus amount will remain under the control of the special court, and its final distribution will depend on the outcome of the judicial proceedings.
The approval to sell all assets worth 3464 crore rupees seized by the ED is a major step. Nevertheless, after the initial settlement phase of 1950 crore rupees, the further use of the remaining funds will be determined by the special court. The NSEL case was initiated at the MRA Marg police station in Mumbai in 2013, and the investigation was subsequently transferred to the Mumbai Police Financial Wing (EOW).
The case was filed against the company that provided the exchange platform, its directors and key officials, 25 members who defaulted on payments, and other individuals. Allegations included criminal conspiracy, fraud, criminal breach of trust, and forgery. It was alleged that trading was permitted without actual commodity inventory, which led to the payment crisis.
This default affected approximately 13,000 investors, whose total unpaid debt was estimated at around 5600 crore rupees. The ED began the investigation under the Prevention of Money Laundering Act (PMLA), 2002, registering an ECIR. To date, the agency has issued 35 preliminary arrest warrants to seize assets worth about 3464.03 crore rupees. The ED has also filed criminal and supplementary complaints in the special court.
To find a way to pay the investors, the NCLT in Mumbai approved a settlement scheme on November 28, 2025, in accordance with Sections 230–232 of the Companies Act, 2013. Under this scheme, 1950 crore rupees are to be paid to 5682 specified creditors in a lump sum. The scheme received support from over 92% of the creditors.
It was stipulated that each concerned creditor would receive no less than approximately 42% of their verified amount. Subsequently, the NCLAT dismissed the appeal filed against the scheme's approval on January 15, 2026, and the challenge in the Supreme Court was also rejected.
On April 13, 2026, the Supreme Court directed all relevant courts and authorities to take necessary measures for the swift implementation of this scheme. The court issued this directive so that investors meeting the scheme's criteria could receive their payments.
Thanks to the recent approval by the Special PMLA Court, the process of raising funds for settlement through the sale of seized assets can continue. This paves the way for the payment of 1950 crore rupees to investors in the first phase, while the fate of the remaining funds will be decided according to further legal procedures.
The ED has stated that this is not the agency's first step in returning funds to investors. Previously, under the direction of a committee chaired by retired Judge Pradip Nandrajog, appointed by the Supreme Court, the agency presented shares of Timber Trail Travel Today Private Limited and the income derived therefrom, totaling approximately 17.47 crore rupees, to the committee for distribution among investors.
The current approval to sell assets worth 3464 crore rupees is viewed as another significant step towards alleviating the plight of investors. The ED has stated that it will continue efforts to identify and confiscate assets linked to financial crimes, as well as pursue prosecution in money laundering cases, to return funds to legitimate investors and creditors.