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The West Bengal government on Thursday refuted the allegations of The Chatterjee Group and told the Company Law Board there was nothing illegal in 15.5 crores additional shares of Haldia Petrochemicals Ltd.
"There was no act of ultra vires (beyond the power) by HPL management while issuing these shares," the counsels appearing for state government said.
West Bengal government and TCG have been at loggerheads for gaining management control of the Haldia refinery.
"You were aware of what was going inside the company, so there is no violation of Articles of Association," the West Bengal government said.
During the proceedings on Thursday, TCG changed their earlier stand and admitted that HPL management was aware of these shares.
On Wednesday, TCG had alleged that HPL's 15.5 crore shares were unaccounted for and beyond its paid-up capital.
Also read: Haldia: TCG alleges foul play
It further alleged that the shares were beyond the structure of HPL.
The argument assumes significance in the tussle between promoters to control the company, as whosoever controls these 15.5 crore shares would have an upper hand in the HPL Board.
ON Thursday, TCGÂ again contended it was its share because as per the agreement, the shares were supposed to be handed over to them.
At present these shares are with West Bengal Industrial Development Corporation, TCG`s partner in Haldia.
TCG had accused that the shares, worth Rs 150 crore (Rs 1.5 billion), were never registered.
TCG has pleaded for 'Doctrine of Indoor Management' of the Companies Act, 1956, in the issuance of Rs 150 crore HPL's shares to Indian Oil Corporation.
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