The Zenotech founder alleged that FIPB granted permission to Daiichi Sankyo to acquire 20% stake in his company without board approval
Hyderabad: Zenotech Laboratories founder and managing director Jayaram Chigurupati has challenged the Foreign Investment Promotion Board (FIPB) approval to Daiichi Sankyo for buying 20% stake in his company, reports PTI.
As on January 2008, Ranbaxy held around 45% stake in Zenotech. In June 2008, Ranbaxy was acquired by Daiichi Sankyo, giving the Japanese pharma giant automatic control over the city-based biotech company.
Following FIPB's approval, Daiichi Sankyo in September 2010 said it had completed the acquisition of the 68.86 lakh shares (20%) in Zenotech through the open offer route.
Ranbaxy and Daichi together hold 66.84% share in Zenotech, including 20% stake that was acquired through open offer. Chigurupati holds 26% while the rest is held by public.
Chigurupati, in his petition, alleged that FIPB granted permission to Daiichi to acquire 20% stake in Zenotech without the company's board approval which is mandatory for any foreign company interested to acquire stake in any Indian company.
"Thus, the Respondent No2 (FIPB) was required to comply with the guidelines and ensure that there was resolution from the Board of Directors of the Indian company supporting the foreign investment before issuing approval to the foreign company.
"In the present case, Respondent No2 has issued the impugned approval to Respondent No3 (Daiichi Sankyo) despite there being no such resolution passed by the Board of Directors of Respondent No4 (Zenotech) supporting the induction of foreign equity from Respondent No3 into its share capital," Chigurupati said in his petition.
Seeking relief, the petition requested the court "to set aside the approval dated 6.10.2008 granted by the Respondent No2 to Respondent No3 to acquire 20% of the equity shareholding of Respondent No4."
Ranbaxy did not respond to emails seeking comment on the issue.
Chigurupati also said the FIPB also failed to ensure whether Daiichi's application for approval of foreign investment is supported by a shareholder's agreement or not.
Chigurupati requested the court to stay the approval order given to Daiichi to acquire stake in Zenotech and direct the Japanese pharma major not to exercise its voting rights in Zenotech during the pendency of the Writ Petition. He also requested the court to direct that no steps should be taken to change the ownership structure of Zenotech.
Last year, Chigurupati had contested Ranbaxy's decision to appoint BK Raizada as the managing director of Zenotech.
While Chigurupati claimed that there was an agreement with Ranbaxy for his continuance as MD of the company, the CLB passed orders in favour of Ranbaxy on 20th April last year upholding the appointment of Raizada as MD, saying the law doesn't prevent a company from having two MDs.
The State Commission for Women asked Mumbai Police to conduct an inquiry into allegations that the rights of women were violated during the raid on a rave party at Juhu
Mumbai: Maharashtra State Commission for Women (MSCW) has asked Mumbai Police Commissioner to conduct an inquiry into allegations that the rights of women were violated after police busted a rave party in the city on 20th May, reports PTI.
The commission gave the direction recently after taking cognisance of a complaint filed with it by social activist Santosh Daundkar through his lawyer YP Singh.
Daundkar has alleged that the police had drawn urine and blood samples of women (for drug tests) illegally "as there was no such provision under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act)".
He said women were searched without following the mandatory procedure provided under the Act. "There is no provision under NDPS Act to detain a person for urine and blood samples once search in person has been done."
The social activist said 'dignified' women were paraded before the media, undermining their esteem. Prescribed procedure for arrest, as laid down by the Supreme Court, not followed," Daundkar maintained.
Late last month, Police Commissioner Arup Patnaik said that 44 out of 92 people, who were rounded up from the rave party held at a plush hotel in suburban Juhu, had tested positive for drugs. These 44 were from a group of 46 men whose test results had been made public.
Among these, 27 had consumed cannabis, one had MDMA (better known as ecstasy, a drug usually taken in pill form) while 16 had consumed both the drugs, he had said.
The test results of 46 others, including two IPL cricketers Wayne Parnell and Rahul Sharma and 38 women, were awaited. Police had raided the hotel following inputs about the presence of drugs at the party. The participants were let off after their urine and blood samples were taken.
A rave party is essentially an event held without permission, usually outdoors or in basements, and is known for use of trance music, drugs and psychedelic lights.
While some zones will be operating separate counters for Tatkal tickets, others will be issuing tickets from the same counters but will provide only Tatkal tickets through these counters between 10am and 10.30am
New Delhi: Amidst rising complaints about misuse of the railway's Tatkal scheme of booking tickets, a revised scheme with additional measures to check the lacunae has come into effect from Tuesday under which passengers can book Tatkal tickets from 10am instead of 8am, reports PTI.
The revised scheme comes in the backdrop of increased number of complaints from train passengers about the misuse of the scheme and involvement of touts in cornering bulk of tickets to sell them at a premium.
No authorised agents, including agents of IRCTC and others, will be allowed to book Tatkal tickets from 10am to 12am from counters as well as from Internet.
While some zones will be operating separate counters for Tatkal tickets, others will be issuing tickets from the same counters but will provide only Tatkal tickets through these counters between 10 am and 10.30 am.
The booking of Tatkal tickets under the revamped scheme will begin on 10th July and zonal railways have been instructed to make adequate arrangement at reservation counters accordingly, said a senior Railway Ministry official.
Under the new arrangement, the booking of Tatkal tickets will start at 10 am on the previous day of journey from the train's originating station instead of 8 am at present.
Measures such as installation of CCTVs in major booking centres, barring booking clerks to carry mobile phones inside counters, display of helpline numbers for complaints, raids by the vigilance squads to prevent misuse of Tatkal facility have been taken, he said.
Earlier, advance reservation period of Tatkal scheme was reduced from two days, excluding the day of journey, to one day.
Refunds are not granted on cancellation of confirmed Tatkal tickets except in case of special circumstances like late running of train by more than three hours and cancellation of trains.
Duplicate Tatkal tickets are not issued under normal circumstances. "In exceptional cases, duplicate Tatkal tickets can be issued on payment of full fare including Tatkal charges," the official said.
Railways have also initiated steps to augment e-ticket handling capacity of its website through short-term and long- term measures.
The present e-ticket capacity is being increased from existing about 3.5 lakh bookings to around 5 lakh bookings per day in about four months, which will further be increased to about 8 lakh bookings per day in the long term.