Sesa Sterlite slips over 2% as government challenges merger

MUMBAI: Shares of Sesa Sterlite were witnessing selling pressure after the Ministry of Corporate Affairs challenged the Bombay High Court’s approval of merger of Sesa Goa and Sterlite Industries.

According to reports, the government is of the view that the amalgamation of two companies was aimed at avoiding taxes.

The ministry cited the Income Tax department and said the merger is a device for tax evasion in a petition to the Supreme Court.

The next hearing on the case will be on July 17.

The merge was approved in August 2013 after the high courts of Goa and Madras dismissed petitions challenging income tax evasion.

According to reports, the counsel of Sesa Sterlite opposed the petition and said it was filed with much delay and argued that the merged entity has been trading since last August.

More clarity on the matter is expected when the apex court starts hearing both sides in next hearing.

At 12:20 p.m.; the stock was at Rs 284.50, down 1.86 per cent, on the BSE. It touched a high of Rs 291 and a low of Rs 284.05 in trade today.