Harrison Issue: Kerala to take up strongly with Centre Govt

The State government, which has already initiated proceedings against Harrisons Malayalam Ltd (HML), has decided to seriously take up with the Ministry of Corporate affairs, Ministry of Company Affairs, Enforcement Directorate and other Central Financial Institutions all the issues, including the alleged siphoning of money from the country, violation of FERA and amalgamation of HML with its other companies.

Revenue Secretary Sathyajeeth Rajan will meet the officials of Ministry of Corporate affairs, Ministry of Company Affairs, Enforcement Directorate and other Central Financial Institutions and present the State's case before them.

It is learned that the State government had decided to strongly present its views after the Centre had not taken any serious decision with regard to the issues raised. The Centre had not responded to the State's demand for a comprehensive inquiry into the alleged diversion of funds by the company from the country to Ghana, which amounted to violation of FERA.

The revenue secretary is also known to take up with the ministry of Corporate Affairs the stand it had taken with respect to the amalgamation of HML and its other companies. The Ministry had submitted before the High Court that it will not object to the composite scheme of amalgamation, which had raised a controversy with the state government stating that its views were not sought before the Ministry gave the report.

Moreover, the state government is yet to get a response about reports of availing tea subsidies by the company from the Tea Board by producing alleged fake sketches and documents. The government had already written to the various Ministries about the company availing tea subsidies after the vigilance department is learned to have raised doubts about it.

Source: The Newindian Express

http://epaper.newindianexpress.com/221145/The-New-Indian-Express-Thiruvananthapuram/30-01-2014#page/5/1

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