Zee Media Bureau
Maruti Suzuki on Saturday decided to take minority shareholders' approval over Gujarat plant.
The project will be funded by Suzuki.
Maruti Suzuki India Ltd (MSIL) is facing stiff resistance from private sector mutual funds and insurance companies, which own almost 7 percent of the company, for its decision to allow Suzuki Motor to make cars for MSIL at a proposed plant in Gujarat instead of manufacturing the vehicles itself.
Separately, state-run Life Insurance Corporation of India (LIC) has sought clarifications from MSIL about the Gujarat project. The private institutions are trying to rope in LIC to jointly oppose the company's decision.
SEBI was approached days after the 16 investors wrote to MSIL Chairman R C Bhargava and other board members, seeking quashing of the "oppressive transaction" to save the company from becoming a "shell" entity.
Maruti has maintained the deal is in the best interests of shareholders and is in compliance with all norms.
With Agency Inputs
First Published: Saturday, March 15, 2014, 14:10