FIPB puts Unitech plan on hold
A complicated proposal of Avens Properties, a subsidiary of Cyprus-based Kortel - which in turn is a subsidiary of Delhi-based Unitech - to pick up a 40% stake in another group company Unitech Developers & Projects, has been put on hold by the F...
By Aman Dhall & Neha Dewan, TNN |
NEW DELHI : A complicated proposal of Avens Properties, a subsidiary of Cyprus-based Kortel — which in turn is a subsidiary of Delhi-based Unitech — to pick up a 40% stake in another group company Unitech Developers & Projects, has been put on hold by the FIPB. Similarly, another such proposal of Jalore Properties, also a subsidiary of Kortel, to pick up 36% in another group company Unitech Hi-Tech Structure has also been put on hold.
Both Unitech Developers & Projects and Unitech Hi-Tech Structure are developing SEZs in India. While Avens was to pick up the stake in Unitech Developers & Projects, developing an SEZ in India, for $33 million, Jalore was to pick up the stake in Unitech Hi-Tech Structure Limited, developing another SEZ, for $29 million.
Under the proposal, Kortel through its subsidiary, to be held by a business trust in Singapore, wanted to acquire Avens Properties that in turn would have picked up 40% stake of Unitech Developers and Projects, currently held by Unitech. Mauritius-based Gladiolys Realty and Unitech hold 60:40 in UDPL.
Unitech had incorporated a new group entity, Avens Properties to invest in SEZs and industrial parks mainly through downstream investments in project companies in India. According to sources, the department of revenue had asked for a deferment of the proposals as it wanted to find out revenue implications of the ‘complicated share transactions’ put forward. Unitech officials were not available for comment despite repeated attempts.
It may be pointed out that UDPL has an agreement to co-develop an IT-ITES SEZ on a 28.62 acre site located in Dundahera, Gurgaon. The SEZ project has already been given formal approval by the Board of Approvals (BoA). In case of the proposal by Jalore Properties, Kortel Limited through its subsidiary company, to be held by a business trust in Singapore, wanted to acquire Jalore Properties that in turn would have picked up 36% stake in UHTSL, currently held by Unitech.
Both Unitech Developers & Projects and Unitech Hi-Tech Structure are developing SEZs in India. While Avens was to pick up the stake in Unitech Developers & Projects, developing an SEZ in India, for $33 million, Jalore was to pick up the stake in Unitech Hi-Tech Structure Limited, developing another SEZ, for $29 million.
Under the proposal, Kortel through its subsidiary, to be held by a business trust in Singapore, wanted to acquire Avens Properties that in turn would have picked up 40% stake of Unitech Developers and Projects, currently held by Unitech. Mauritius-based Gladiolys Realty and Unitech hold 60:40 in UDPL.
Unitech had incorporated a new group entity, Avens Properties to invest in SEZs and industrial parks mainly through downstream investments in project companies in India. According to sources, the department of revenue had asked for a deferment of the proposals as it wanted to find out revenue implications of the ‘complicated share transactions’ put forward. Unitech officials were not available for comment despite repeated attempts.
It may be pointed out that UDPL has an agreement to co-develop an IT-ITES SEZ on a 28.62 acre site located in Dundahera, Gurgaon. The SEZ project has already been given formal approval by the Board of Approvals (BoA). In case of the proposal by Jalore Properties, Kortel Limited through its subsidiary company, to be held by a business trust in Singapore, wanted to acquire Jalore Properties that in turn would have picked up 36% stake in UHTSL, currently held by Unitech.
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