The West Bengal Government’s decision to sell its 40 per cent stake in the sick Haldia Petrochemicals Ltd may face fresh legal tussle.
According to sources, the project’s private promoter, The Chatterjee Group (TCG), has decided to challenge the State’s offer of first right of refusal to TCG on the grounds that it violated the shareholders agreement and lacked transparency.
Govt auction
TCG holds nearly 41 per cent stake in Haldia Petrochemicals.
On October 10, West Bengal invited TCG to buy its 67.5 crore equity shares in HPL at Rs 25.10 each.
The price was discovered through an auction held by the State Government on October 7.
If TCG fails to exercise its right, the stake will be sold to the successful bidder — IndianOil.
Valuer selection
Sources told Business Line that according to TCG, the offer violated the shareholders agreement that clearly underlines that ‘valuation’ should be decided by a valuer.
Also, the valuer should be selected from a panel of three, to be nominated by TCG.
Terms & conditions
Moreover, sources say, in its October 10 offer, the State did not elaborate the detailed terms and conditions under which IndianOil decided to bid for the project.
IOC, which has nearly 9 per cent stake in HPL, was the sole bidder for the project.
West Bengal Industry Minister Partha Chatterjee said he had “no idea” about such a development.
Anirudhha Lahiri, Managing Director of TCG, could not be contacted.