NCLAT admits Reliance Infratel’s plea against NCLT stay on assets sale to Reliance Jio
NCLAT also recalled its 6 April interim order partially allowing Reliance Infratel to execute its Rs25,000 crore asset sale programme with Reliance Jio, after the said order was stayed by the SC
New Delhi: The National Company Law Appellate Tribunal on Wednesday admitted Reliance Infratel Ltd’s appeal against the stay imposed by National Company Law Tribunal (NCLT) Mumbai on the sale of its tower and fibre assets to Reliance Jio Infocomm Ltd.
The appelate tribunal also recalled its 6 April interim order partially allowing Reliance Infratel to execute its Rs25,000 crore asset sale programme with Reliance Jio Infocomm, after the said order was stayed by the Supreme Court on 16 April in an appeal moved by HSBC Daisy Investments (Mauritius) Ltd.
On 6 April, a bench headed by S.J. Mukopadhaya had without vacating the stay on the sale and transfer of Reliance Infratel’s assets, allowed lenders led by the State Bank of India (SBI) to go ahead with the deal in favour of Reliance Jio and deposit the sale proceeds in a separate escrow account subject to its final decision.
Reliance Infratel had moved the tribunal earlier this month against a 12 March stay order passed by NCLT Mumbai bench, in a plea by offshore investors of Reliance Infratel led by HSBC Daisy Investments (Mauritius) Ltd, 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.
A stay imposed by the Bombay high Court on sale of spectrum, media convergence nodes (MCN) and real estate (at New Delhi, Chennai, Kolkata, Jigni and Tirupati) was vacated by the Supreme Court on 5 April.
In December 2017, as part of its debt resolution plan, Anil Ambani-led Reliance Communications Ltd struck a Rs25,000 crore deal with Mukesh Ambani’s Reliance Jio for the sale of its assets mortgaged with different banks, to avoid insolvency proceedings.
The matter would be next heard on 23 April.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.