Companies & Sectors
Chatterjee Group cannot go for arbitration on transfer of 155 million shares of HPL

Calcutta High Court ruled that as per the subsequent agreements, courts at Kolkata have jurisdiction over disputes and TCG could not go for arbitration on transfer of 155 million shares of Haldia Petrochemicals

Kolkata: The Calcutta High Court directed that The Chatterjee Group (TCG) could not go for arbitration on transfer of 155 million shares of Haldia Petrochemicals Ltd (HPL), where it is embroiled in a tussle over controlling stake of the ailing company with the Government of West Bengal, reports PTI.

 

Justice IP Mukerji ruled that the arbitration agreement relied on by TCG stood suppressed by subsequent agreements.

 

The court ruled that as per the subsequent agreements, courts at Kolkata have jurisdiction over disputes.

 

"This effectively means that no arbitration can be held as is being sought by TCG," said senior counsel Sanjay Ginodia, who represented West Bengal Industrial Development Corporation (WBIDC), a wholly-owned subsidiary of the state government.

 

A division bench of the high court had in May restrained Chatterjee Petrochem (Mauritus) Company Ltd (CPMCL), a TCG group company, by an order of injunction from acting upon its request of adjudication at the International Chamber of Commerce's Court of Arbitration in Paris.

 

The bench had also directed that the trial court of Justice IP Mukerji would hear the main petition filed by Haldia Petrochemicals Ltd against CPMCL's plea for arbitration by 10th July.

 

Earlier, the trial court of Justice IP Mukerji had on 4th May declined to pass an interim order on a petition by Haldia Petrochemicals Ltd seeking stay on CPMCL's move to approach the International Chamber of Commerce for resolution of the issue of transfer of 155 million shares.

 

HPL had moved the division bench challenging the order.

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NHB to raise up to $200 million next quarter via ECB route

The housing finance regulator said it would also try to raise funds on behalf of developers who are into low-cost housing

Mumbai: National Housing Bank (NHB) has said it will raise up to $200 million in next quarter under the new external commercial borrowing (ECB) window allowed by the Reserve Bank of India, reports PTI.

"We are looking at raising up to $200 million under the new ECB window opened by RBI for low-cost housing. We will soon approach RBI for its permission. The money will be used to fund retail housing," NHB Chairman and Managing Director RV Verma told reporters.

Going forward, the housing finance regulator will also try to raise funds on behalf of developers who are into low- cost housing, he said.

"Our funds will be used to finance low-income households by way of credit to housing finance companies (HFCs) on pre- condition that the fund is used only to build affordable houses," Verma said.

Even though home sales are falling in almost all the major markets, Verma said he is expecting a 20% growth in housing finance this fiscal.

On 17th December, the Reserve Bank allowed real estate developers and housing finance companies to raise up to $1 billion through ECBs in the current fiscal to promote low-cost residential projects.

The funds raised through ECBs could be used either for developing low-cost housing projects or for providing loans up to Rs25 lakh to individuals for buying units with a price tag of Rs30 lakhs or less, RBI had said in a circular.

Besides developers, the apex bank said HFCs/NHB can also raise ECBs for financing prospective owners of low cost, affordable housing units. Slum rehabilitation projects, too will be eligible for raising ECBs.

ECBs are considered attractive option as cost of raising the loan overseas is lower than that of domestic borrowings.

Besides, they provide an additional avenue to access large amounts of funds from global financial markets.

As per RBI guidelines, developers/builders with a minimum track record of five years in undertaking residential project will be eligible to raise ECBs.

With regard to HFCs, RBI said companies with a minimum paid up capital of Rs50 crore and minimum net owned fund of Rs300 crore would be eligible to raise ECBs.

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SEBI slaps Rs25 lakh fine on Central Bank's equity dealer and wife

SEBI observed that before placing the orders for CBI, shares were purchased in the account of Vibha Sharma and sold to match the orders of the bank. The couple thereby earned undue profits at the cost of CBI and its customers

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs25 lakh on one equity dealer of Central Bank of India and his wife for engaging in fraudulent trading, reports PTI.

The regulator said that the penalty of Rs25 lakh on Jitendra Kumar Sharma and his wife Vibha Sharma has to be jointly paid by the couple.

SEBI had conducted a probe on the trading activities of the couple from 1 December 2009 to 31 March 2010.

As per SEBI, Jitendra Sharma an equity dealer for the Central Bank of India (CBI) since 8 May 2008 used to place orders for the public sector bank with the brokers Kaviraj Securities and Trustline Securities. While, Vibha Sharma traded through broker, Eureka Stock & Share Broking Services.

It was found that the sell trades of Vibha Sharma matched 100% with that of the buy trades of CBI.

SEBI observed that before placing the orders for CBI, shares were purchased in the account of Vibha Sharma and sold to match the orders of the bank. The couple thereby earned undue profits at the cost of CBI and its customers.

"I observe from the material available on record that the noticees have earned an undue profit of about Rs71.58 lakh by indulging in the unfair and fraudulent trade practices," SEBI's Adjudicating Officer PK Kuriachen said in the order.

"These undue profits earned by the noticees fall upon the CBI and its customers and ultimately on the investors of the securities market. In other words, the undue profits earned by the noticees are nothing but the losses to them," it added.

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COMMENTS

Vaibhav Dhoka

4 years ago

Which agency will recover losses to banks which in turn is Central Banks investor.Is there any mechanism to compensate such fraudulent deals.There must be someone in Bank management party to this fraud.

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