Rahul Bajaj, chairman, Maharashtra Scooters Ltd (MSL) has suggested the appointment of an independent arbitrator to sort out the contentious issue of the valuation of Western Maharashtra Development Corporations (WMDC) 27 per cent stake in MSL.Bajaj said he would be writing to the Maharashtra state government in the next couple of days suggesting that if there is no clear agreement on the issue they should both resort to arbitration.The arbitration route was discussed at the MSL board meeting held here on Friday. Bajaj has shown willingness to pick up 27 per cent stake and had earlier made a Rs 50 per share. However, the situation changed after J. Kankaria, a Kolkata-based broker, offered to buy WMDC’s stake in MSL at Rs 200 per share. Bajaj had written to the state government on July 6, 2003, making a counter offer of Rs 75 per share for WMDC’s stake but there was no response from the government.Regarding the issue of valuation of WMDC’s holding in MSL, Bajaj said he had not heard about the Kankaria offer nor had Kankaria made an offer to WMDC. But he said the Rs 200 valuation was not acceptable to Bajaj Auto and also added that Bajaj Auto had the first right to buy the stake as per the 28-year-old agreement with WMDC.At the MSL AGM held on Friday, Bajaj suggested appointing an independent arbitrator who could be a retired justice from the Supreme Court or a High Court judge. But this arbitrator would have to be acceptable to both parties and the award should binding with no room for appeal.
