The Chatterjee Group to resume HPL arbitration proceedings in Paris Court

KOLKATA: The Chatterjee Group ( TCG) has resumed arbitration proceedings in Paris over the ownership of 155 million shares in Haldia Petrochemicals Ltd (HPL) that are key to the state government's move to divest its holdings in the company in favour of Indian Oil Corp ( IOC).

India's Supreme Court had last month rejected the West Bengal government's appeal to restrain HPL's promoter TCG from approaching the international court of arbitration in Paris. The court had been closed for the Christmas and New Year holidays. TCG had approached the Paris court for settling the dispute. TCG and the West Bengal government have both laid claim to the shares. The Kolkata High Court has meanwhile extended its stay on the transfer of shares until January 21.

IOC emerged as the sole bidder for the stake that the state government had offered for sale. But the transfer of the stake to IOC was stayed, although the company had deposited earnest money of about Rs 20 crore. News agencies have reported that IOC has asked the state government to refund the earnest money as it wants to withdraw from the divestment process.