The Company Law Board has passed an order on a petition filed by the Chatterjee Group opposing the sale of 7.5% stake by the West Bengal government to Indian Oil Corporation. Haldia Petrochemicals Limited (HPL) has been asked to furnish details about the sale by the CLB. The law board's principle bench headed by S. Balasubramanian directed HPL to furnish at the next hearing "details of whether the cheque of Indian Oil has been encashed and whether the shares were allotted to Indian Oil.
Allegations have been made of "mismanagement in operation" of Haldia Petrochemicals by the West Bengal government (with 38.67% stake). As the HPL board meeting scheduled for July 29 was subsequently deferred, Chatterjee Group alleged that the company board was not informed of the government's decision. The Chatterjee Group holds majority stake in HPL and had been entitled to the first right of refusal on West Bengal government stakes. The state-owned refining and marketing major Indian Oil had issued a cheque for Rs.1.5 billion for the 7.5% stake in HPL. The cheque had been lying with HPL authorities since February this year as the Chatterjee Group had objections to IOC's entry into HPL.
05-Aug-05 
