IndiaTech.org Urges NCLT-Led Dissolution of WazirX

IndiaTech.org, an industry association representing India’s technology start‑ups, unicorns and investors convened a panel focused on regulatory gaps in India’s virtual digital assets (VDA) framework and urged a National Company Law Tribunal (NCLT)–led dissolution of embattled crypto exchange WazirX to safeguard Indian investors.

At the IndiaTech Dialogues - Governance & Safeguards Series, legal and finance experts dissected the fallout from WazirX’s 2024 cyberattack and subsequent corporate restructuring in Singapore, which has left retail traders with little recourse under Indian law.

The event, held at the India Habitat Centre, drew leaders from Fountainhead Legal, 9Point Capital and the digital payments sector.

Call for NCLT‑Driven Dissolution

Digital payments expert Sanjay Saxena pressed for invoking India’s insolvency code under the NCLT, arguing it would “establish structured legally binding remedies that address jurisdictional ambiguities while protecting investors.” He noted that without transparent third‑party audits and enforceable solvency norms, user trust continues to erode.

Rashmi Deshpande, founder of Fountainhead Legal, emphasised that “assets transferred offshore without recourse leave users vulnerable” and called for mandatory data disclosures, on‑shore solvency requirements and enforceable legal remedies under Indian law. Technology lawyer Chirayu Bagree added that the sector currently operates “in a regulatory vacuum” and recommended creation of a dedicated globally recognised crypto regulator focused on investor protection.

Investor Protection

Panelists condemned the fact that WazirX’s parent, Zettai Pte Ltd, is incorporated in Singapore, forcing all moratoriums, restructuring proposals and court proceedings there, effectively shutting out Indian users from domestic dispute resolution. “Indian traders face immense hurdles participating in Singapore proceedings,” said moderator and IndiaTech.org CEO Rameesh Kailasam.

The panel underscored that as India’s VDA market matures, projected to grow exponentially over the next decade, clear rules governing disputes, hacks, bankruptcies and cross‑border asset transfers are critical. “In a world where assets are borderless,” Kailasam said, “investors must know how their rights are protected and which laws apply in case of emergencies.”

IndiaTech Dialogues, which brings together policymakers, industry leaders and academics, plans to refine these recommendations in forthcoming sessions, aiming to shape a unified VDA regulatory framework that balances innovation with strong investor safeguards.