RNRL-RPower merger: Plea challenging single judge's order filed
Madurai: A petition was Friday filed in the Madras High Court Bench here seeking quashing of a single judge's order dismissing a plea for a probe by the Serious Fraud Investigation Office and CBI into the 2010 merger of Reliance Natural Resources Ltd with Reliance Power.
The single judge had misconstrued his petition as if he had questioned the merger, the petitioner, A Vasudevan, said.
He submitted that he had only sought a direction under Section 11C of SEBI Act, to SEBI to appoint an investigating agency to probe the complaint on the share-swap ratio, which was fixed as 4:1.
The share-swap, thus fixed, was an unlawful business practice which led to the company enriching itself to the tune of Rs 2,105.87 crore, and share holders losing, he alleged.
He also said he was a shareholder from Madurai and the cause of action arose within the jurisdiction of this court.
The single judge's order that the Madras High court had no jurisdiction should be quashed and a direction be issued to SEBI to probe the share-swap through an investigating agency, the petitioner said.
In his order on June 25, Justice R.S.Ramanathan had dismissed the petition, stating that a case regarding the merger was pending in the Bombay High Court and if the petitioner wanted relief he could seek it by filing an intervening petition there.
The judge also felt that the petitioner did not file the necessary materials to prove his allegation that the merger caused a loss of Rs 2,105.87 crore to the shareholders.
Justice K N Basha and P Devadoss posted the case for hearing on November 29.