Chatterjee files case against allotment of 7.5% shares in Haldia to IOC

04-Aug-05

The Chatterjee Group (TCG) has urged CLB to stop restrain HPL from issuing fresh shares to IOC. Chatterjee's lawyer filed a case in the company law board against Haldia Petrochem allotting 7.5% shares to Indian Oil Corp. against Rs 150 crores. He claims that this allotment has caused a loss of Rs 300 crores to HPL, as IOC has paid a meager Rs 10 per share, instead of the Rs 29 per share that Chatterjee had offered to pay. Meanwhile, Haldia Petrochemicals encashed the Rs 150 crore cheque given by Indian Oil Corporation, paving the way for the company to join as an equity partner. The cheque was issued in February this year by IOC, but had not been encashed because of Chatterjee's objection, which the government finally overruled. After encashment of the cheque, Chatterjee alleged that transfer of shares to Indian Oil "involved a breach of trust" on the part of the government as it had violated an agreement signed with Chatterjee in 1994. He said the government was bound not to issue shares to any entity without Chatterjee's consent. Company law board chairman S. Balasubramanian has adjourned the matter for a day. Of Haldia's Rs 1,410-crore equity, the West Bengal government holds 36.87%, the Tatas 3.19% and Chatterjee and his associates the rest.