INDIA: Bajoria Asks CLB To Quash Bombay Dyeing Plea
Jute baron Arun Bajoria has urged the Mumbai branch of the Company Law Board (CLB) to reject the application of the Bombay Dyeing management that stripped him of voting rights on shares held in the textiles company. Bajoria said in the petition that the proceeding against him was "not maintainable under the Indian judicial practice."The CLB order was based on allegations by Bombay Dyeing that Bajoria had violated the Securities and Exchange Board of India-specified takeover norms while picking up Bombay Dyeing shares. In response, the CLB froze Bajoria's voting rights by amending the Register of Members even though the shares had been registered in Bajoria's name. The CLB order had raised issues of multiple jurisdiction on the issue which was not in line with the normal judicial procedure of the country. The Securities and Exchange Board of India (SEBI) has already initiated an investigation to ascertain whether Bajoria's acquisition of the five per cent stake in Bombay Dyeing was in conformity with the takeover regulations.A SEBI official met Bajoria last week. Sources added that Bajoria's office has faxed today the proof of his communication, dated November 6, to CLB to the board as well as Bombay Dyeing.Bajoria sent his application to CLB on speed post. Bombay Dyeing, in turn, will have to file its reply to CLB within a week. Earlier, Bajoria had claimed that he sent a communication to the Bombay Dyeing management and Calcutta Stock Exchange as soon as his holding in the company exceeded five per cent. The Bombay Dyeing management, however, denied receiving any such information.On the charges that Bajoria violated the takeover code by not informing the management within four working days after his stake in the company exceeded five per cent, the Bombay Dyeing management moved to SEBI as well as CLB.
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