HC reserves verdict on Idea, Spice merger -Governance Now

HC reserves verdict on Idea, Spice merger

Companies under scanner for suppression of facts on their merger

PTI | June 3, 2011

The Delhi High Court on Thursday reserved verdict on the merger of Aditya Birla Group firm Idea Cellular and Spice Communications which has come under scanner for suppression of facts and said if allegations are found to be true, top executives may face criminal action.

The Department of Telecom (DoT) has challenged the 2008 merger, accusing the two companies of suppressing facts about the demerging of overlapping licences in the same circles.

The court indicated that if allegations of fraud and non-disclosure are found as true it may not prefer to recall the merger, as its will punish a large number of stakeholders, but the Chairman cum Managing Director (CMD) and other senior officials of Idea may face criminal contempt proceedings.

"If I find suppression of fact and fraud why should I punish the common shareholder of Idea. It is a huge company. If I reach that conclusion I will initiate contempt proceeding against its CMD and other officers who filed the affidavits," said Justice Manmohan.

"This is very strange case. They (Idea) forget their own scheme. It is height of inefficiency. They are in contempt of court. They said demerger of licences in the merger scheme and then forgot. Their scheme needs drastic amendment," he said.

Additional Solicitor General A S Chandhiok had pleaded to the court that orders allowing the merger must be recalled if it is found that the company suppressed relevant facts to secure it.

"If they played fraud (to secure the order) they must face the consequences. Let the public learn lesson with whom they ant to be shareholders," Chandhiok said.

The judge, however, said that if the merger order is recalled Spice will come to exist again and it will adversely affect the stakeholders.

Comments

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.