The State Government has filed its objection before Regional director, Ministry of Company Affairs, Chennai, regarding shifting of the office of STEL Holdings Ltd, in which Harrisons Malayalam Ltd (HML) has a major share, from Kerala to Maharashtra.
In the objection, the government submits that STEL Holdings Ltd formerly known as Sentinel Tea and Exports Ltd, is a wholly owned subsidiary of Harrisons Malayalam Ltd with its registered office at Willingdon Island, Cochin.
Following the demerger scheme, the investment undertaking of HML has been vested with the STEL Holdings Ltd.
The objection has also been forwarded to Ministry of Corporate Affairs, SEBI and other financial institutions.
The government has filed the objection after there were allegations that the shifting of the base from Kerala to Maharashtra was to thwart the land resumption procedures of the government against the company.
It was last month that STEL Holdings published a notice in two newspapers stating the shifting of their registered office from Kerala to Maharashtra.
All the assets and liabilities of HML pertaining to the investment business including investment in the Books of Account of HML have been transferred and belongs to STEL.
Following the demerger scheme, the investment undertaking of HML has been vested with STEL Holdings Ltd.
Hence, action taken by the government against HML in respect of government lands has to be initiated against the fixed assets including freehold lands in the name of STEL Holdings Ltd.
The government’s interest will be prejudiced in case the shifting of the office is allowed, the government said in the objection.
As the High Court is hearing the entire issues relating to land allegedly in the illegal possession of HML and its fully-owned subsidiaries, any change of jurisdiction from Kerala to Maharashtra will adversely affect the various cases pending before the High Court, the government said in the objection.
The government also demanded an inquiry as to whether the move is intended to defraud the state and public exchequer thereby defeating the attempt of the government to take over the lands in illegal possession.
Moreover, it also states that the move to shift the office was against the interests of the workers. HML vice-president(Legal) V Venugopal had earlier opined that STEL was only a subsidiary company of the HML till 2009 when tea exports were done through this company.
After the demerger, STEL is a standalone company listed under BSE and NSE, he said, and claimed that STEL does not have any land or plantations in Kerala.