The BoR Karamchari Sangh is seeking a stay on the proposed merger of the bank with ICICI Bank
The Rajasthan High Court (HC) on Wednesday issued notices to the Reserve Bank of India (RBI), Bank of Rajasthan (BoR), ICICI Bank and others on a petition filed by an employees union of the Udaipur-based bank against its proposed merger with the country's largest private sector lender, reports PTI.
"The High Court issued notices to all respondents — the Union of India, Reserve Bank, Securities and Exchange Board of India (SEBI), BoR, ICICI Bank, PK Tayal and SK Tayal (BoR promoters)," said lawyer Varun Sinha, who filed the petition on behalf of the Akhil Bharatiya BoR Karamchari Sangh.
The respondents have been asked to file their replies within four weeks after which the matter will be posted for hearing.
The BoR Karamchari Sangh is seeking a stay on the proposed merger of the bank with ICICI Bank, Mr Sinha added.
The petition claims that the BoR board decision on 18 May, 2010 to merge with ICICI Bank was illegal as SEBI had found out that the Tayals had acquired 55.1% equity in the bank in violation of its regulations.
SEBI in its order on 8 March, 2010 had restrained the Tayals and their group entities from dealing in BoR shares.
"Then the merger on the basis of the share swap ratio method is in contrary to the SEBI order," Mr Sinha said.
ICICI Bank on 23 May, 2010 had agreed to take over BoR in a share-swap deal that valued the BoR at over Rs3,000 crore.
The merger would be based on ICICI giving one share for every 4.72 shares of BoR.
Post-merger, the balance sheet of ICICI Bank would cross Rs4 lakh crore. BoR has a total business of over Rs23,000 crore, as against nearly Rs3,84,000 crore of ICICI Bank.
The court's direction came over a petition filed by the three firms, which contended that they could not respond to summons issued by SEBI as they hadn't received the proper attachments
The Supreme Court (SC) on Wednesday set aside an order passed by the Securities Appellate Tribunal (SAT), which had upheld fines imposed by the Securities and Exchange Board of India (SEBI) on three investment firms for not complying with the market regulator's summons, reports PTI.
A bench, comprising Chief Justice S H Kapadia and Justices K S Radhakrishnan and Swatanter Kumar, directed SAT to hear the cases filed by the three brokerage houses again.
The bench also directed the three Kolkata-based investment firms - Gateway Computers, Tricon Business and Delton Exim - to pay Rs1 lakh each. "The tribunal (SAT), on the payment of such an amount, would hear the cases... would be listed before the tribunal on 26th July for directions," the court said.
SAT would also give the firms time to file their supporting applications, it added.
The apex court said that SAT had not accorded the brokers a proper hearing and dismissed the cases in the absence of their counsel.
The court's direction came over a petition filed by the three firms, which contended that they could not respond to summons issued by SEBI officials as they hadn't received the proper attachments.
The matter related to trading of shares of Nageshwar Investment Ltd, which witnessed an enormous rise between April 2005 and November 2005. Following this, SEBI initiated an investigation and issued summons to the firms - asking them to produce the relevant documents.
Despite receiving three summons from the regulatory body, the firms had failed to furnish any documents.
Following this, SEBI issued notices asking the firms to explain why action should not be taken against them for non-compliance of its order.
The firms responded by stating that they had not received the annexures attached to the summons.
Not satisfied with the explanation, the market regulator imposed a fine of Rs15 lakh on them under Section 15 A of the SEBI Act in April 2009.
This was challenged by them before SAT, which rejected their contention that SEBI had not provided them with enough time to collect the relevant data and documents.
IDBI Bank was the lead arranger of the Rs13,125 crore debt with Power Finance Corporation acting as joint lead arranger. A consortium of over 15 banks and financial institutions are participating in the financing arrangements
Anil Ambani Group firm Reliance Power (R-Power) today said it has tied up finances for its Rs 17,500 crore ultra mega power project (UMPP) at Krishnapatnam in Andhra Pradesh, reports PTI.
The 4,000 MW coal fired project is being financed in 75:25 debt-equity ratio, R-Power said in a press statement.
"R-Power announces the financial closure of its 4,000 MW Krishnapatnam Ultra Mega Power Project being developed by Coastal Andhra Pradesh Ltd, its wholly-owned subsidiary," it said.
The company has executed financing agreements for the imported coal fired project, the largest in South India.
The project "will supply power at a competitive levelised tariff of Rs2.33 per kilo-Watt-hour (or unit) to the four states — Andhra Pradesh (1,600 MW), Maharashtra (800 MW), Tamil Nadu (800 MW) and Karnataka (800 MW)."
IDBI Bank was the lead arranger of the Rs13,125 crore debt with Power Finance Corporation (PFC) acting as joint lead arranger.
"A consortium of over 15 banks and financial institutions are participating in the financing arrangements," the statement said.
The consortium includes REC, LIC, Uco Bank, Union Bank of India, Andhra Bank, Corporation Bank, Punjab National Bank, Indian Overseas Bank, Andhra Bank, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, Vijaya Bank, Punjab & Sind Bank, Yes Bank and Indian Bank.
"With the financial closure for the Krishnapatnam UMPP, we have completed the financing arrangements for two UMPPs awarded to us by the government and have secured funding for a capacity of 10,000 MW," R-Power CEO J P Chalasani said.
The company had earlier achieved financial closure of Sasan ultra-mega power project.
"The Krishnapatnam financing is an important milestone as we undertake the implementation of our power project portfolio of over 37,000 MW," he said without giving details.