Subhiksha cases adjourned again

CHENNAI: Retail chain Subhiksha on Thursday sought more time from Madras High court to respond to the petition filed against its merger with little-known MSE-listed NBFC Blue Green Constructions and Investments. Justice P Jyothimani adjourned the hearing on the case to August 3.

Meanwhile, hearing on the winding up petition filed by Kotak Mahindra Bank lasted almost an hour with the bank���s legal counsel seeking an investigation into the fund position of the retail chain.

He raised a range of issues, including payment of a security deposit of Rs 230 crore by Subhiksha to Blue Green in August last towards 10% stake in the listed firm valuing the firm at Rs 2,300 crore. This came at a time when the company was already in financial trouble, he argued.

Incidentally, when the retail firm entered into an agreement for merging itself with Blue Green, the latter had a share capital of just Rs 5 crore. The hearing has now been adjourned to July 6, when Subhiksha is expected to respond to Kotak���s allegations.