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Friday, 17 January 2014

Centre not consulted on HML merger issue: Kerala

The Centre's decision not to object the merger between Harrisons Malayalam Ltd and three other companies has raised a controversy with the state government stating that it was not consulted on its views before the Ministry of Corporate affairs filed a report.

However, the Ministry of Corporate Affairs claimed that the state government had not filed any objection before it against the the amalgamation between Harrisons Malayala ltd and Enchanting Plantations Ltd, Malayalam Plantations Ltd and Harmony Plantations Ltd, and that the report was filed based on the papers available with it.

The revenue department officials said that the government had informed the Ministry that the company had mooted an amalgamation of its various companies by suppressing the material fact through forged and concocted documents, a matter of grave concern and against public interest that warranted investigation into the affairs of the company under section 237 of the Companies Act. It was on this basis that the Ministry of Corporate Affairs Deputy Director M S Pachouri directed the Regional Director and Registrar of Companies, Kerala, to furnish a report. ''So it is not known why the regional director now says that the state has not filed an objection,'' they said.

Moreover, the regional director should have inquired about the initiatives taken to retrieve the lands in their illegal possession, pending cases and also the criminal cases filed against the company executives. The regional director also have all the documents with regard to alleged violations of the Companies Act by the company with respect to the shifting of the office of the STEL holdings, which could also have been taken into account before giving such a report.

The Regional Director, Ministry of Corporate Affairs, Chennai region, had filed before the High Court that it decided not to make any objection in the matter of amalgamation after the scheme of arrangement and other relevant papers were examined. Regional Director B K Bansal claimed that the state government had not filed any objection before him. 

Source: The Newindian Express
http://epaper.newindianexpress.com/215014/The-New-Indian-Express-Kochi/17012014#page/4/1

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