Greenpeace complains to SEBI against GVK Group
New Delhi: Global environment watchdog Greenpeace has lodged a complaint against the GVK Group with the Securities and Exchange Board of India (SEBI), saying the Indian infrastructure major had filed incomplete information about its USD 6.4 billion Alpha coal project in Australia.
The Alpha coal project was suspended by the Australian government June 5, a week after it was approved, saying the approval process was a "shambolic joke".
"Federal Environment Minister Tony Burke revealed that GVK had written to him acknowledging that additional work was required to satisfy the environmental approval process. This information was not included at the time when GVK made its statement to the India exchanges," Greenpeace said in a statement Tuesday.
The main concern for the department and environmentalists is the fact that export shipments from GVK's Alpha mine in the remote Galilee Basin would traverse the famous Great Barrier Reef.
According to Greenpeace, GVK has still not alerted the Indian exchanges on which it is listed to important developments that have emerged since the suspension of project.
"GVK enjoyed a five percent increase in their share valuation after the project was cleared last month. But there have since been several significant and serious developments that are likely to adversely impact the project. We are calling on GVK to inform the exchange about these developments because they carry material concern to investors," said Arundhati Muthu, a Greenpeace campaigner.
"No market can function without ongoing disclosure. These investments are problematic on so many levels. Investors need up to date information in order to judge the risk they are being asked to invest in," she said.