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This is an archive article published on August 28, 2010
SC strikes down shareholders plea
SC refused to restrain Vedanta from buying additional 20 stake in Cairn through Sesa Goa.
Written by Indu Bhan
New Delhi | August 28, 2010 03:00 AM IST
2 min read
2 min read
The Supreme Court on Friday refused to restrain London-based Vedanta Resources from buying an additional 20 stake in Cairn India through another Anil Agarwal-controlled iron ore firm,Sesa Goa.
A Bench headed by Justice G S Singhvi dismissed as withdrawn a Sesa Goa minority shareholders plea saying that You are importing all together new thing now8230; There is no valid ground for entertaing the prayer8230; It is a desperate case where you want early hearing,. The petitioner,Harinarayan G Bajaj,had filed a petition on 2007 too,relating to Agarwals acquisition of controlling 51 stake in Sesa Goa that year from Japans Mitsui amp; Co for 980 million.
Senior Advocate Ranjit Kumar,appearing for the minority shareholder,submitted that the iron ore producer should be stopped from participating in Cairn India8217;s takeover by parent Vedanta group,as it was under probe for alleged frauds.
The shareholder said that SFIO was already investigating the affairs of Sesa Goa whose management has been charged with serious offences of siphoning of funds from the mining firm under the garb of under invoicing of iron ore exports and coking coal imports.
Bajaj added the acquisition of 20 stake in Cairn by Sesa Goa would require Rs 14,300 crore; Sesa Goa had a total free cash reserve of approximately Rs 7,835 crore,thus the iron ore firm will be obligated to take a loan of Rs 6,500 crore.
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