Companies & Sectors
Supreme Court stays proceedings in all 2G cases in Delhi High Court

The Supreme Court had expressed its displeasure that the Delhi High Court was hearing matters related with the 2G spectrum scam despite its restraining order 

 
New Delhi: The Supreme Court on Friday stayed the proceedings on all petitions relating to the 2G spectrum allocation scam, pending before the Delhi High Court, on a plea by Central Bureau of Investigation (CBI), reports PTI.
 
"All proceedings pending before the Delhi High Court shall remain stayed," said a bench of justices GS Singhvi and KS Radhakrishnan.
 
In its plea, the CBI cited a Supreme Court order of 11 April 2011, which had directed that no court other than the apex court shall entertain any application relating to the case.
 
The court was informed that there were 20 petitions or applications pending before the High Court after the filing of the chargesheets in the 2G case.
 
The bench issued notices and sought replies of various parties within six weeks on the CBI application. 
 
The apex court had expressed its displeasure on 8th November that the Delhi High Court was hearing the matter relating to the 2G spectrum scam despite its order restraining courts below the apex court from adjudicating issues linked to the case.
 
"Despite injunction the Delhi High Court has entertained petition relating to the 2G spectrum case. It is very surprising on the part of the behaviour of the high court," the court had said.
 
CBI counsel K K Venugopal had said the bench can pass an order and stay such proceedings.
 
The bench said an application can be filed by the CBI so that it can give a clear-cut order. "We will hear your application," it had said.
 
"We will make it clear that no court will entertain any petition (on the 2G case)," the bench had said after senior advocate Mukul Rohatgi, who is representing Essar Group in the case against them, sought clarification on the injunction.
 
Rohatgi had said the legal right available to the affected parties cannot be taken away and one such right was to approach the high court.
 
He had said it was for Parliament to make or amend laws and the legal rights available cannot be denied.
 
"We cannot say anything for Parliament to amend laws. Law making is in their domain," the bench had observed.
 

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Diageo to buy 53.4% stake in Mallya's United Spirits for Rs11,166 crore

Vijay Mallya will continue as Chairman of United Spirits, whose major stake would be purchased by Diageo at Rs1,440 per share or for Rs11,166 crore

New Delhi: Diageo Plc, the world's largest spirits maker on Friday said it will buy a 53.4% stake in United Spirits for Rs11,166.5 crore. The multi-structured deal may provide Vijay Mallya a breather from troubles emanating from the grounded Kingfisher Airlines, reports PTI.

 

In a joint statement, the UK-based company said it has entered into an agreement with United Breweries (Holdings) Ltd and United Spirits Ltd (USL) to buy 27.4% stake in USL, the top liquor company in India at Rs1,440 per share or a total of Rs5,725.4 crore. 

 

Further, Diageo will also acquire 19.3% stake in USL at Rs1,440 per share from the UBHL group, the USL Benefit Trust, Palmer Investment Group Ltd and UB Sports Management (two subsidiaries of USL) and SWEW Benefit Company (a company established for the benefit of certain USL employees).

 

The company will seek approval from USL shareholders for a preferential allotment to Diageo at a price of Rs1,440 per share of new shares amounting to 10% of the post-issue enlarged share capital of USL. It further said it will launch a tender offer to acquire a further 26% stake in USL at Rs1,440 per share.

 

"On completion of the share purchases as described above and in the event that the tender offer were fully subscribed, Diageo will hold 53.4% of the enlarged USL share capital at an aggregate cost of Rs11,166.5 crore," the company said.

 

Following completion of these agreements, Mallya will continue in his current role as Chairman of USL, and UBHL and he will work with Diageo to build the USL business as the current consumer trends for premiumisation accelerate in India, it added.

 

Kingfisher has a debt pile of over Rs7,000 crore.

 

Diageo Plc Chief Executive Paul S Walsh said: "The combination of USL's strong business with the capabilities which Diageo brings as the world's leading premium drinks company will ensure that USL continues to lead the industry in India."

 

On his part Mallya said: "I have had a long association with Diageo and therefore I am confident that this winning partnership with Diageo provides USL with the best possible platform for future growth. I am delighted to remain part of that journey as Chairman of USL as we work together to build continued value for the shareholders of USL and UBHL."

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COMMENTS

Nem Chandra Singhal

4 years ago

One more good company has been sold to foreigner. Are the Indian business-men simply traders. I am sad.
Nem Chandra Singhal

SBI Q2 net profit up 30% to Rs3,658 crore; asset quality deteriorates

State Bank of India however, showed signs of stress on asset quality as its gross NPAs ratio jumped  5.2% to Rs49,202.5 crore during the September quarter

Mumbai: The country's largest lender State Bank of India on Friday posted a 30.16% jump in its net profit to Rs3,658.14 crore during the second quarter ended September 2012, reports PTI.

 

The bank had registered a net profit of Rs2,810.43 crore in the corresponding July-September period of last year.

 

The bank, however, showed signs of stress on asset quality as the gross non-performing assets (NPAs) ratio jumped to 5.2% from the year-ago period of 4.2%.

 

In absolute terms, its gross non-performing assets stood at Rs49,202.46 crore, SBI said in a filing to the BSE.

 

The bank's core net interest income rose 4.69% to Rs10,974 crore during the reporting quarter, while the total income rose to Rs32,953.47 crore from Rs29,394,32 crore in the year-ago period, the statement said.

 

Its net interest margin during the quarter stood almost flat at 3.77% for domestic operations, it said in a press statement.

 

SBI's total capital adequacy stood at 12.63% with the core tier-I at 8.97%.

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