BPL Group patriarch T P G Nambiar's equity stake in his son-in-law Rajeev Chandrasekhar-run telecom and communications division, BPL Innovation, is only 7 per cent and he has "no economic interests" in this division of the Group, Counsel for Chandrasekhar told the Company Law Board, Chennai on Saturday.
Winding up the arguments for interlocutory order petition filed by Nambiar seeking "freezing" of the shareholdings in BPL's telecom businesses, A M Singhvi, Counsel for Chandrasekhar said Nambiar's stake in BPL Innovation was just 7 per cent and a case has been filed to "arm twist" Chandrasekhar into paying Rs 92 crore (Rs 920 million) for the corporate debt restructuring programme of the ailing consumer electronics division - BPL Sanyo.
Singhvi said Nambiar's stake in BPL Innovation came down after he did not subscribe to the rights issue in March 2004.
He further argued that even the seven per cent stake of Nambiar was pledged with the financial institution, ICICI.
"The pledge has been made partially towards default of TPG's companies," he told the CLB. "Nambiar has no economic interests at all in this business (BPL Innovation)," he said, adding that a case was filed as "this was the only successful activity of BPL."
U K Chaudhary, counsel for Nambiar, said it was T P G Nambiar who brought Rs 550 crore (Rs 5.5 billion) initially to buy the cellular licences for BPL's telecom foray.
Chandrasekhar, who has not put in a "single crore " is now controlling Rs 3,500 crore (Rs 35 billion) worth business, he said. CLB is expected to issue the order on the petition next week.
