EOW’s order of freezing assets and cash balance of FTIL has no impact on its day-to-day operations, says Prashant Desai

With the involvement of Enforcement Directorate (ED) and Economic Offences Wing (EOW) in the NSEL- FTIL crisis, the case has taken an intriguing turn. The incongruousness of Economic Offences Wing (EOW) is clearly evident from the way it is levying ill-proportioned penalties on FTIL, alleging it on unlawful grounds without any appropriate evidence. It is clearly a case of EOW led astray and washing its hands off the real defaulters in this matter. However, the way FTIL is coping with the situation is laudable.

The cooperation of the company with the investigating agencies further reinforces its candor and ingenuousness in this matter. Prashant Desai, MD and CEO, FTIL is hopeful and all positive despite the series of unfavorable events in the past few months.

Talking about the impact of these events on day-to-day operations of FTIL, Mr. Desai stated that, “In the middle of the legal battles, EOW’s order of freezing the assets and cash balance of FTIL will not hamper the day to day operations. We don’t see any significant impact currently.  The reason we believe that there is no impact is that the letter which was issued to us will be challenged in the courts of law. An application seeking the permission to carry out our day-to-day operations has already been filed by us in the courts of law. We firmly believe and hope that the courts of law will eventually be in our favor. The reason we believe so is that a similar letter was issued to us by the EOW somewhere around February 2015 asking us to not to dispose off any asset.

The same letter was challenged by us in the Bombay High Court, and the BHC had actually stayed that letter. We believe that the Honorable court of this country will see through this and ensure that the day-to-day FTIL operations of the company are not hampered or threatened.”