Chatterjee again moves Paris court over Haldia share dispute

16 Jan 2014

The Chatterjee Group, which owns a 41-per cent stake in West Bengal's largely state-run Haldia Petrochemicals Ltd, has resumed arbitration proceedings at an international court in Paris over the ownership of 155 million shares in HPL that are key to the state government's move to divest its holdings in the company in favour of IndianOil Corp (IOC).

The news comes even as IOC has decided to avoid buying the state government's near-40 per cent shares in the refinery that was supposed to be West Bengal's showpiece project, and has demanded back its earnest money of Rs200 crore (See: IOC withdraws bid for Bengal's ailing Haldia Petrochem).

India's Supreme Court had in December last year rejected the West Bengal government's appeal to restrain HPL's promoter TCG from approaching the international court of arbitration in Paris. The Purnendu Chatterjee's TCG then appealed to the Paris court for settling the dispute.

The TCG and the West Bengal government have both laid claim to the shares. The Kolkata High Court has meanwhile extended its stay on the transfer of shares until 21 January.