CLB orders WB Govt to exit HPL
In a severe jolt to the West Bengal government, the Company Law Board on Wednesday directed it to exit from Haldia Petrochemical Ltd by selling its stake to joint venture partner Purnendu Chatterjee, though upholding the Indian Oil Corp's (IOC) en...
By PTI |
NEW DELHI: In a severe jolt to the West Bengal government, the Company Law Board on Wednesday directed it to exit from Haldia Petrochemical Ltd by selling its stake to joint venture partner Purnendu Chatterjee, though upholding the Indian Oil Corp's (IOC) entry into the refinery.
"I am of the considered view that the petitioners (Chatterjee) should have the right/have the legitimate expectation to require Government of West Bengal Industrial Development Corporation/West Bengal government to disinvest their 520 million shares in favour of the petitioner, especially when I am upholding the IOC allotment" CLB Chairman S Balasubramanian said.
Balasubramanian said it was evident from the beginning that the intention of WBIDC/GoWB "has been to remain either as minority shareholders or disengage themselves as shareholders of the company."
CLB said the price payable for the 520 million shares should be the fair price determined by the valuer appointed by it or Rs 28.80, whichever was higher.
However, the CLB Chairman refused to stay the allotment of 150-million of HPL shares to IOC by the West Bengal government, which had been opposed by the Chatterjee group.
The Chatterjee group had moved the CLB through Chatterjee Petrochem (Mauritius) Company, Winstar India Investment Co Ltd, India Trade (Mauritius) Ltd and Chatterjee Petrochem (India) Pvt Ltd.
Balasubramanian also asked the Chatterjee group to purchase 271 million preference shares alloted by HPL to GoWB and WBIDC in lieu of tax concessions and for waiving of interest on loans.
"I am of the considered view that the petitioners (Chatterjee) should have the right/have the legitimate expectation to require Government of West Bengal Industrial Development Corporation/West Bengal government to disinvest their 520 million shares in favour of the petitioner, especially when I am upholding the IOC allotment" CLB Chairman S Balasubramanian said.
Balasubramanian said it was evident from the beginning that the intention of WBIDC/GoWB "has been to remain either as minority shareholders or disengage themselves as shareholders of the company."
CLB said the price payable for the 520 million shares should be the fair price determined by the valuer appointed by it or Rs 28.80, whichever was higher.
However, the CLB Chairman refused to stay the allotment of 150-million of HPL shares to IOC by the West Bengal government, which had been opposed by the Chatterjee group.
The Chatterjee group had moved the CLB through Chatterjee Petrochem (Mauritius) Company, Winstar India Investment Co Ltd, India Trade (Mauritius) Ltd and Chatterjee Petrochem (India) Pvt Ltd.
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Balasubramanian also asked the Chatterjee group to purchase 271 million preference shares alloted by HPL to GoWB and WBIDC in lieu of tax concessions and for waiving of interest on loans.
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