Setback to merger ambitions of HML
By Prabhat Nair | ENS | Published: 14th November 2012 11:37 AM |
The State Government has informed the financial regulatory bodies and stock exchanges across the country that sanction should not be given for the amalgamation/merger of Harrisons Malayalam Ltd (HML) until the final disposal of cases related to the possession of its land by the High Court.
The Revenue Department had sent letters to the Centre, Corporate Affairs, RBI, SEBI, NSE, BSE, Institute of Chartered Accountants of India, Controller of Capital Issues and IG Registration, Chennai, among other regulatory bodies, in this regard. In the letter, the Department stated that any amalgamation or merger should only be subject to the final orders of the High Court.
The Department said that as the land was a disputed issue, it would be unlawful and improper if amalgamation was given sanction.
Official sources said that the regulatory bodies had been informed so as to safeguard the interest of the public citing that the functioning of the company was not smooth and everything was at stake.
The company was continuously trying to mislead the public which forced the Department to write to the concerned, they said.
Moreover, they said that HML had intimated the Bombay Stock Exchange about the amalgamation before informing the same to the Kerala High Court, even as the issue was sub judice.
Though the High Court on August 13 ruled that any amalgamation or merger could only be subject to the final orders, a meeting convened by the HML on August 17 took a decision on the composite scheme of arrangement and amalgamation among Harrisons Malayalam Ltd, Enchanting Plantations Ltd, Malayalam Plantations Ltd and Harmony Plantations Ltd.
The government had submitted before the court that the company was consistently attempting to change the status of the land under the guise of amalgamation by flouting land rules of the state, including the Land Reforms Act.
Sources said that HML was for amalgamation/merger of the companies with an intention to scuttle the action taken by the government to take over the land in the illegal possession of the company.