NSEL Scam: Supreme Court upholds priority of MPID Act over RDB Act, SARFAESI and IBC

The Supreme Court has prioritized the repayment of investors in the ₹5,600 crore National Spot Exchange Limited (NSEL) scam by ruling that the provisions of the Maharashtra Protection of Investors' Interests (in Financial Establishments) Act, 1999 (MPID Act), will supersede the Insolvency and Bankruptcy Code (IBC) in this specific case. This decision ensures that the approximately 13,000 affected investors will receive priority in the repayment of their dues over the claims of secured creditors. The apex court's ruling is expected to have a significant impact on the ongoing recovery proceedings and the distribution of assets in the NSEL scam case.