In Brief
The Supreme Court upheld Maharashtra's right to attach assets of 63 Moons Technologies for violations under the Maharashtra Protection of Interest of Depositors Act 1999. The Court held that National Spot Exchange Limited (NSEL), a wholly-owned subsidiary of 63 Moons, is a 'financial establishment' that accepted 'deposits' under the Act. Paired commodity contracts offered by NSEL, promising 14-16% returns backed by warehouse collaterals, constituted financial deposits despite lacking express interest clauses. NSEL received both money from buyers and commodities from sellers with obligations to return them (in services and kind), making it a deposit-accepting entity. The forensic audit revealed systematic contraventions: allowing defaulters to trade, issuing fake warehouse receipts, and misusing client funds. The Court affirmed the constitutional validity of the protective legislation, following prior precedent, and confirmed the property attachments were justified.
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