The Company Law Board has directed the West Bengal government to exit from Haldia Petrochemical Ltd by selling its stake to joint venture partner Purnendu Chatterjee. This order has proved to be a severe jolt to the state government. However, the CLB 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 order also confirmed the transfer of 155 million shares by the WBIDC to TCG at Rs 10 per share, for which the balance amount of Rs 125 crore will have to be paid on or before February 28. This will take TCG's share in Haldia Petro to 52% and it will be allowed to take over the day-to-day management of the company. The Chatterjee Group has been asked 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.
The CLB Chairman is quoted to have said "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"
01-Feb-07 
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