TCG and WBIDC advised to settle matters affably

30-Sep-05

The company law board (CLB) has advised The Chatterjee Group (TCG) and West Bengal Industrial Development Corporation to resolve the dispute over Haldia Petrochemicals' stake sale in an amicable manner. The CLB chairman has suggested to both sides to meet with West Bengal chief minister to work out a "compromise formula". Fresh hearings have been slated after one month for October 26, 27 and 28, within which time frame, the two are expected to work things out. The board's stand gives both sides a chance to reach a truce and the matter appears to be going into settlement mode. The case reached the CLB when TCG sought to have the Bengal government's share sale to IOC rescinded. TCG claims that its majority stake in HPL gets jeoparised when any share is put on the block. The sale to IOC meant a dilution in its own holding, though he failed to come up with the cash when the state government offered to sell TCG its 43%. TCG failed to succeed in the IOC matter, but another share allotment worth Rs135 core to IDBI was halted till the case was resolved. Prior to the stake sale to IOC, WBIDC owned 36% of HPL, TCG 61% and the Tatas around 3%.