The State Government has informed thefinancial regulatory bodies and stock exchanges across the country thatsanction should not be given for the amalgamation/merger of Harrisons MalayalamLtd (HML) until the final disposal of cases related to the possession of itsland by the High Court.
The Revenue Departmenthad sent letters to the Centre, Corporate Affairs, RBI, SEBI, NSE, BSE,Institute of Chartered Accountants of India, Controller of Capital Issues andIG Registration, Chennai, among other regulatory bodies, in this regard. In theletter, the Department stated that any amalgamation or merger should only besubject to the final orders of the High Court.
The Department said that as the land was a disputed issue, itwould be unlawful and improper if amalgamation was given sanction.
Official sources saidthat the regulatory bodies had been informed so as to safeguard the interest ofthe public citing that the functioning of the company was not smooth andeverything was at stake.
The company was continuously trying to mislead the public whichforced the Department to write to the concerned, they said.
Moreover, they said thatHML had intimated the Bombay Stock Exchange about the amalgamation before informingthe same to the Kerala High Court, even as the issue was sub judice.
Though the High Court onAugust 13 ruled that any amalgamation or merger could only be subject to thefinal orders, a meeting convened by the HML on August 17 took a decision on thecomposite scheme of arrangement and amalgamation among Harrisons Malayalam Ltd,Enchanting Plantations Ltd, Malayalam Plantations Ltd and Harmony PlantationsLtd.
The government hadsubmitted before the court that the company was consistently attempting tochange the status of the land under the guise of amalgamation by flouting landrules of the state, including the Land Reforms Act.
Sources saidthat HML was for amalgamation/merger of the companies with an intention toscuttle the action taken by the government to take over the land in the illegalpossession of the company.