Anil Ambani has got a huge relief from the Supreme Court's decision to rebuff the Public Interest Litigation filed by a Gujarat based investor association and Non-government organisation to hurdle the forthcoming Reliance Power IPO. Now Reliance can launch India 's biggest ever Initial Public Offering in the market on time, which is scheduled on January 15, 2008 after getting green signal of the apex court.
Hearing a writ petition over challenging the Reliance Power IPO, a three-judges bench of apex court comprising Chief Justice, K G Balakrishnan, Justice R V Raveendran and Justice J M Panchal has stayed the interim proceeding of the plea filed by Rajkot Jilla Grahak Suraksha Mandal (RJGSM) and Jagrut Grahak Suraksha Mahila Mandal (JGSMM) to seek the reassessment of the price at which ADAG is offering Reliance Power shares to the retail investors.
The bench headed by Chief Justice K G Balakrishnan has also issued a notice to RJGSM and JGSMM for assaulting to company. The court's decision came after the hearing of the argument of company's senior counsel Harish Slave, who said, “PIL had now become a tool for surrogate corporate war.�
“At this rate, anyone can move the court against the mega issue in any part of the country and it will become impossible for companies to offer public issues because of multiple litigations. Such a petition was condemned by the Supreme Court years ago in the famous Morgan Stanley case.� added Salve.
“The NGO had earlier filed the petition in Mumbai High court, which has directed to SEBI to hear the plea. After hearing the petition, SEBI also granted clean chit to ADAG, but now NGO has moved to Gujarat high Court to violate the company.� argued Harish.
As per court regulation such petition should be filed in the place, where the company has the registered office. So the case should be filed in Mumbai high court not in Gujarat High court.
“According to the information received from various sources, several other PILs were to be filed in some other High Courts to obstruct the IPO of the company,� said Salve by accusing petitioner to act against public interest and also investors' interest.
"We are into an international project and the world is looking at us. The company is preparing to generate 28,000 mw power and now the IPO cannot be reversed as it would affect the capital market�, said Salve.
On the other hand, Ramjibhai Malani, the head of RJGSM had told to media that RJGSM was not against the IPO, but its some of the provisions and clauses that were neither in the interests of the shareholders of Reliance Energy, nor the subscribers of Reliance Power. “The power projects bagged by Reliance Energy should not be transferred to Reliance Power without any consideration�, objected Malani.
Rajkot Jilla Grahak Suraksha Mandal (RJGSM) is one of the 22 Sebi-recognised investors' associations in the country along with four others in Gujarat which have not joined hands with RJGSM. Some high profile personalities including former Gujarat chief minister Chhabildas Mehta, former Congress MP Ramjibhai Mavani, retired Justice SK Dubey and Justice TS Doabia are in RJGSM.
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