Court Clarifies That Lifting of Asset Attachments Does Not Exonerate Criminal Charges in the NSEL Case
In a significant ruling, the Bombay High Court has reinforced the autonomy of criminal proceedings against M/s. 63 Moons Technologies Limited and others, despite a sanctioned scheme of arrangement approved by the National Company Law Tribunal (NCLT). The Division Bench, comprising Justices A.S. Gadkari and Kamal Khata, delivered the judgment on March 9, 2026, in response to appeals and interim applications challenging the Appellate Tribunal's directions under the Prevention of Money Laundering Act, 2002.
The Appellate Tribunal had previously directed the appellants to furnish an indemnity bond amounting to Rs. 1095,27,17,055/- and provide an undertaking regarding the proceeds of crime. Upon compliance, the provisional attachment of movable properties was to be lifted. However, the Bombay High Court clarified that this procedural relief does not affect the ongoing criminal charges, which must proceed to their logical conclusion independently.
The court addressed concerns regarding attempts to use NCLT-approved schemes as a mechanism for indirect exoneration from criminal liabilities. It emphasized that civil proceedings cannot override or compromise the gravity of criminal charges, which involve allegations of duping numerous investors.
The NCLT had sanctioned a scheme for the distribution of settlement amounts among specified creditors, appointing Justice S.C. Gupte as the Monitoring Authority. The Bombay High Court reiterated that while the scheme facilitates financial reparations, it does not equate to a quashing of criminal proceedings.
The judgment underscores that any attempt to secure discharge from criminal prosecution through NCLT-sanctioned agreements cannot be entertained. The court asserted the necessity for alleged offences to be pursued diligently by competent criminal courts, thereby upholding the principle that criminal accountability cannot be mitigated by civil settlements.
As a result, the court disposed of all related appeals, interim applications, and writ petitions. The ruling serves as a critical reminder of the distinct separation between civil arrangements and criminal proceedings, ensuring that justice is served without undermining the severity of criminal allegations.
Bottom Line:
Appellate Tribunal's directions regarding furnishing indemnity bonds, release of attached assets, and liberty for review or modification clarified. Criminal charges cannot be diluted by NCLT-approved schemes.
Statutory provision(s): Prevention of Money Laundering Act, 2002
M/s. 63 Moons Technologies Limited v. Union of India, (Bombay)(DB) : Law Finder Doc id # 2872719
