Indian Oil Corporation (IOC) and West Bengal Industrial Development Corporation (WBIDC) have asked The Chatterjee Group (TCG) to honour the resolution passed by the board of Haldia Petrochemicals (HPL) approving allotment of shares to IOC. However, TCG alleges that the shares were allotted "secretly" by the Bengal government and is in violation of the 1994 agreement between the two.
This resolution was not acceptable to TCG, who has asked the Company Law Board (CLB) to make the resolution "void". In the petition filed with the CLB , TCG had alleged that the Bengal government, represented by the WBIDC has issued shares amounting to a 7.5% stake for Rs 150 crore to IOC without its consent. TCG being the majority stakeholder, the group claims that it reserves the pre-emptive right to any share allotment and should have been given the first right of refusal for the shares.
30-Mar-06 
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