The Hindu Business Line : Chatterjee Group charges Bengal Govt, HPL with mismanagement

THE Chatterjee Group (TCG), one of the major stakeholders in Haldia Petrochemicals Ltd (HPL), today repeated its allegations of oppression and mismanagement by the West Bengal Government, HPL, and the West Bengal Industrial Development Corporation (WBIDC) in the affairs of the company before the Company Law Board (CLB).

While reasserting its position as the majority stakeholder in the company, TCG said that if WBIDC wanted to dilute its stake in HPL, the first right of refusal belonged to it (TCG).

CLB was hearing the main petition filed by TCG in August this year seeking to restrain on share transfer of HPL to Indian Oil Corporation. The matter would be heard again on Wednesday, when HPL, WBIDC and the West Bengal Government are going to make their submissions. IOC is to invest Rs 150 crore in the company for a 7.5 per cent stake with representation on the company's board. According to TCG, which had the right of first refusal whenever the Tatas or the West Bengal Government wanted to exit HPL, the option was to be given to them.

HPL is a three-way joint venture between Dr Purnendu Chatterjee of Chatterjee Petrochem (Mauritius) Company (a TCG group company), WBIDC and the Tatas. The West Bengal Government has 36 per cent stake in HPL, TCG holds about 53 per cent and Tatas hold three per cent.

In its earlier ruling, the CLB had said that status quo of shareholding pattern of all stakeholders as on August 5 be maintained. It had also restrained the company from allotting shares worth Rs 135 crore to the lenders, IDBI, till the disposal of the case.

According to The Chatterjee Group, with further allotment of shares to IDBI as per the corporate debt restructuring (CDR) package, they would become minority stakeholders in HPL. The main contention of the TCG was that there was an agreement between them, the WBIDC, and the West Bengal Government, that in case the shares held by WBIDC were to be transferred it would be to TCG first. However, in a complete breach of trust and confidence, the two refused to do so, the TCG said.

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