HSBC Daisy moves SC against Anil Ambani

HSBC Daisy moves SC against Anil Ambani

Agency News

After the Ericsson got a positive verdict, Offshore investors led by HSBC Daisy Investments (Mauritius) and other minority shareholders also moved the Supreme Court against Anil Ambani.

HSBC moved the Supreme Court against the National Company Law Appellate Tribunal (NCLAT) order that deferred hearing on its contempt petitions “six times” over an alleged default in payment of Rs 230 crore against Reliance Infratel and its promoter Anil Ambani. A bench led by justice RF Nariman refused to interfere in the case, but said that it has “no doubt that the NCLAT will take up the case” on March 27, the next date of hearing.

As per the consent terms of the agreement between Reliance Infratel, HSBC Daisy and others, recorded by the NCLAT in its order dated June 26, 2018, the Anil Ambani-owned firm was to pay the amount within a period of 180 days. After the expiry of the six-month period, HSBC Daisy and other nine minority shareholders holding 4.26% stake in Reliance Infratel have filed contempt pleas against Anil Ambani and other officials of Reliance Infratel, the unit that houses RCom’s towers and fibre assets.

HSBC in its appeal before the SC said the NCLAT had been adjourning the contempt petitions despite the firm having intentionally and willfully committed breach of their undertakings before the NCLAT.
It said that Ambani and his company has no intention of honouring their undertakings which is clear from the fact that they have neither provided the bank guarantee nor made any payment as per their unconditional undertakings before the NCLAT.

HSBC also wants to restrain the Reliance group from withdrawing the appeals filed against the National Company Law Tribunal that commenced the corporate insolvency resolution process. It said that by reviving the insolvency process, the Ambani firm wants to avoid its payment obligations.

The NCLT, Mumbai, in its interim order of March 12 last year had restrained Reliance Infratel and others from selling its assets. The order was passed on HSBC Daisy’s plea alleging oppression of minority shareholders and mismanagement for not taking their consent for the asset sale as per the Articles of Association of the company. In July 2007, HSBC Daisy Investment along with a clutch of other investors had invested around Rs 1,100 crore in Reliance Infratel for about 5% stake, which has now come down to 4.26%.