New Delhi, Apr 5 (PTI) Tata Communications will hold a shareholders’ meeting on May 10 to discuss surplus land transfer to government through special purpose vehicle Hemisphere Properties India Ltd.
“In pursuance of the order dated March 26, 2018 passed by the Mumbai Bench of the National Company Law Tribunal in the company scheme application…a meeting of the equity shareholders of the company will be held on Thursday, May 10, 2018,” Tata Communications said in a BSE filing.
The company referred letter issued by BSE and NSE conveying no objection to the scheme of arrangement and reconstruction among Tata Communciations and HPIL in February in the filing.
The cabinet on Wednesday cleared the transfer of administrative control of HPIL from the telecom ministry to the housing and urban development ministry after equity infusion of Rs 700 crore and Rs 51 crore secured loan into the company.
HPIL is managing the transfer of surplus land from Tata Communications, formerly VSNL, to the government.
The decision brings about one-and-a-half decade old case in the final lap.
The transfer will be executed after infusion of equity amounting to Rs 700 crore and Rs 51 crore secured loan from government into the company and implementation of scheme of arrangement for de-merger of surplus land, it said.
The government disinvested a majority stake in Videsh Sanchar Nigam Ltd (VSNL), now Tata Communications, in February 2002 and passed on to the Strategic Partner, Panatone Finvest Ltd (PFL), a special purpose vehicle under the Tata Groups of Companies.
At the time of disinvestment, 773.13 acre surplus land in four cities — Pune, Kolkata, New Delhi and Chennai (out of a total of 1,230.13 acres of land) — was demarcated. It was decided that the surplus land will not be a part of the disinvestment bid.
As per the shareholding agreement, PFL undertook an obligation to de-merge or hive off the surplus land into a realty company.
In 2005, the Cabinet had approved a SPV — HPIL — under the telecom ministry to execute the transaction related to the surplus VSNL land.
The Cabinet has authorised DoT “to undertake all steps incidental for transfer of equity stake in HPIL from Ministry of Communications to the Ministry of Housing and Urban Affairs (MoHUA) infusion of equity and implementation of Scheme of Arrangement.” The Cabinet granted an exemption to HPIL from the policy of government relating to Foreign Direct Investment in real estate business.
It also delegated power to HPIL to take appropriate decision to give effect to object clause of its Memorandum of Association including sale, long term lease and disposal of land.
This is published unedited from the PTI feed.