The Centre is taking a relook on the Pawan Hans disinvestment course of on account that Almas Global Opportunity Fund, one of many three entities a part of the profitable consortium, has a court docket order handed in opposition to it by the National Company Law Tribunal (NCLT), authorities sources advised The Indian Express. The authorities is finding out whether or not the NCLT verdict quantities to an “adverse order” — one thing that will result in disqualification of the bid, as per tips on strategic disinvestment.
The consortium entity that positioned and received the bid for the state-owned helicopter service supplier is Star9 Mobility Pvt Ltd. Cayman Islands-based Almas Global Opportunity Fund, which is managed by Dubai-based Almas Capital owns 49% of Star9 Mobility, with the remaining held by Mumbai-based Big Charter Pvt Ltd and Delhi-based Maharaja Aviation.
On April 29, a bunch of ministers, comprising Road Transport & Highways Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Civil Aviation Minister Jyotiraditya Scindia, authorised Star9 Mobility’s bid on the market of the Centre’s 51% stake in Pawan Hans for Rs 211.14 crore.
However, 9 days previous to the approval on April 20, the Kolkata bench of the NCLT had handed an order in opposition to Almas Global Opportunity Fund saying that the entity was in “knowing and wilful contravention of the approved resolution plan”.
“We will do legal examination of the NCLT order before proceeding further. The letter of award (for the Pawan Hans disinvestment) has not been issued yet,” a Department of Investment and Public Asset Management (DIPAM) official concerned within the Pawan Hans disinvestment course of advised The Indian Express.
As per tips issued by the DIPAM in September 2017, “any conviction by a Court of Law or indictment/adverse order by a regulatory authority that casts a doubt on the ability of the bidder to manage the public sector unit when it is disinvested, or which relates to a grave offence would constitute disqualification”.
The decision plan in query pertains to a Kolkata-based energy distribution firm EMC Ltd for which Almas Global Opportunity Fund was declared the profitable bidder. But regardless of having its decision plan for EMC Ltd authorised by the NCLT, the fund didn’t deposit the cash required for the decision course of.
“The SRA (Successful Resolution Applicant) has not exhibited any intention by taking some concrete steps that can instil some degree of confidence in the earnestness of the SRA. It is plain for anyone willing to see that the SRA is not likely to part with the funds in the foreseeable future. The SRA has taken the entire process for a ride, and nothing can really excuse this audacity. The attitude of the SRA really will tick every parameter that can be applied to satisfy the ‘knowing and wilful contravention’ test laid down in section 74(3)46 of the Code on a reasonable construction,” the NCLT famous in its April 20 order.
“The SRA has been pussyfooting around with regard to the payments to be made under the approved Resolution Plan, for more than one-and-a-quarter years. It is futile to wait indefinitely for the SRA to fulfil its commitments… The repeated exhortations made during the course of hearings to the SRA through its learned senior counsel to make at least some payments in order to show its bona fides, & earnestness have gone completely unheeded. There is no point in chasing the chimera of the SRA fulfilling its commitments under the Resolution Plan,” it stated.
The chapter court docket had additionally ordered motion in opposition to Almas Global Opportunity Fund and its officers below Section 74 (3) learn with Section 236 of the Insolvency & Bankruptcy Code, 2016. These sections stipulate that the celebration will be imprisoned for no less than one 12 months and most of 5 years, along with dealing with a most penalty of as much as Rs 1 crore.
With the Pawan Hans disinvestment being authorised by the group of ministers, the steps that stay earlier than the transaction closes embrace subject of the letter of award, signing of the share buy settlement and handing over of the stake to the brand new homeowners. While the federal government plans to divest its 51% stake in Pawan Hans, the Oil and Natural Gas Corporation (ONGC) additionally plans to promote its 49% stake within the helicopter firm on the identical phrases as agreed upon by the Centre.
