HYDERABAD, Sept 17: The shareholders of VST Industries Ltd have raised a ruckus over the cash-strapped company's decision to hive off prime real estate valued at over Rs 50 crore even as chairman A Basu on Thursday announced that the company had "long-term plans" to move out of Hyderabad.There were scenes of disquiet at the 67th annual general meeting (AGM) of the company on Thursday with many shareholders objecting to the company's decision to sell off most of its property at various places in the city. According to sources, shareholders felt the company could put the property to better use instead of selling it. Basu said the company had received only a few offers which were still being negotiated. While dismissing all apprehensions and assuring the shareholders that the board's real estate committee would examine all the proposals and further investigate the matter, he said that the full board will take a final decision on the matter once it is put before it.The company had in February put outadvertisements to sell four of its properties located in prime areas of the city. These four properties, including The Studio on the busy Begumpet main road in the heart of the city's business district, total about 65,000 square metres.According to realtors in the city, while the deal for The Studio has already been struck, the company is still in the process of negotiating for the other properties located in the posh Banjara Hills and other areas.The VST chairman informed the shareholders the company had long-term plans to shift the factory from its present location at Azamabad in the heart of the city, in line with the state government's efforts to relocate industries from the area. "In the greater interests of the community, your company's factory has been identified for long-term shifting to promote public peace and tranquility in the area," Basu told the shareholders.However, he reaffirmed that, VST had taken all required measures to contain pollution to the satisfaction of the concernedauthorities and has installed the best pollution control equipment in the factory premises, he added.Basu reiterated that BAT was not behind the buying of the company's shares by a few Mumbai-based brokers. He said the company had received intimation only from RS Damani of his 5 per cent holding in the company. If BAT intended to increase its stake, it can do so through various other options available to them, Basu said.
