SC turns down plea to restrain Sesa Goa’s open offer
27 Aug 2010
The Supreme Court today declined to restrain Vedanta Resources' Goa-based subsidiary Sesa Goa from launching an open offer to buy a 20-per cent stake in Cairn India.
A bench comprising Justices G S Singhvi and Ashok Kumar Ganguly turned down the application plea by a Sesa Goa shareholder Harinarayan G Bajaj on grounds of it being bereft of merit.
On Wednesday, Bajaj had moved the Supreme Court seeking directions for restraining the iron ore producer from participating in Cairn India's takeover by parent Vedanta group, saying the company was under investigation for alleged serious frauds.
The court further said it would take up the plea on its main matter on 28 October. The main matter pertains to validity of acquisition of Sesa Goa from Japan's Mitsui & Co by Vedanta Group for $1 billion.
However, according to senior advocate Ranjit Kumar representing the minority shareholder by the time the next hearing took place it would be too late for the petitioner.
Responding to the argument, the court said whatever deal was being negotiated would be subject to the bench's final order and dismissed the application.
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