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RE: Connaught Place, there's a dedicated skyscrpaercity thread for that:
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Good News! British Co. is suing Coal India Ltd.:
TCI files suit against Indian government - FT.com
TCI files suit against Indian government
- By James Crabtree in Mumbai
The Children’s Investment Fund, the UK-based hedge fund, has escalated its battle with Coal India, the state-backed energy company, by filing legal proceedings against India’s government in New Delhi.
The move comes at a time of heightened scrutiny over India’s disorganised state-dominated power system following days of dramatic nationwide power outages, and follows repeated threats of legal action by TCI, Coal India’s largest foreign investor.
TCI’s petition, filed at India’s High Court on Wednesday, is the latest step in a high-profile public campaign pressuring Coal India’s board to raise coal prices for power producers, which are currently held at well below market levels.
The legal move came as shares in Coal India fell by nearly 3 per cent on Wednesday, after the group’s board agreed to government demands to guarantee fuel supplies for new Indian power projects.
The supplies will come partly through increased coals imports, a move investors fear could increase Coal India’s costs, and which was described as “a significant concession” in a note by analysts at Credit Suisse in Mumbai.
Oscar Veldhuijzen, a partner at TCI, said: “The situation is now urgent, and we believe there is a direct relationship between the recent power cuts and way in which the government treats Coal India.”
The legal process highlights what TCI describes as a pattern of political interference in Coal India’s management, which it says harms minority shareholders’ interests while doing little to increase electricity generation and cut power outages.
TCI’s move attempts to overturn an order from a senior government bureaucrat instructing the mining group to lower coal prices to struggling power producers earlier this year. The petition also seeks to overrule a rare government directive made in April, known as a “presidential decree”, which pushed Coal India to increase coal supplies.
The British fund’s campaign has been watched closely as a rare example of shareholder activism in India, although few legal experts believe its latest move is likely to succeed in forcing a change of heart from policy makers in New Delhi.
However Wednesday’s moves could be the precursor to more direct legal action against the state mining group. “Basically we are suing the government to get confirmation by the court that there has been legal interference”, Mr Veldhuijzen said.
“The next step is to sue the directors of Coal India directly for abuse of minority shareholders rights, by accepting directions from the government.”
Critics of TCI’s campaign point out that the offer document published during Coal India’s $3.5bn IPO in 2010, when the fund acquired a 1 per cent stake, warned of potential “risk factors”, including below-market pricing.
Click link below for pic.'s of directors @ Coal India to see the true face of corruption :
Coal India Limited :: A Maharatna Company
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TCI files suit against Indian government - FT.com
Seen this:
YEIDA Formula 1 Track, Delhi NCR
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(c) source:
F1 India Tickets Venue And Location Details Map For BIC Noida
Sahana Towers, Mumbai
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