In a major disclosure, as per the assumption of all liabilities by Airtel under the Scheme of Arrangement with Tata Teleservices, the flow of recovery process available to the Department of Telecommunications (DoT) includes initiating action against the promoters of Airtel.
As per Airtel’s filings with NSE/BSE, the promoter group of Airtel is comprised of Bharti Telecom Limited with a shareholding of 41.24 per cent, Indian Continent Investment Limited – 6.46 per cent, Viridian Limited – 0.21 per cent and Pastel Limited – 14.79 per cent. The inter-se promoter holding ratio between Bharti and non-Bharti shareholders is – 65:35.
Following the Supreme Court judgement of October 24, the clauses in the scheme of arrangement clearly detail the options for DoT to enforce recovery of dues from Airtel.
It has been established that Airtel is liable to discharge and pay the shortfall revenue share pursuant to DoT demand notices.
In the event of Airtel failing to pay, DoT will be entitled to initiate recovery against the assets of Airtel.
Most importantly, after these options run out and assets are inadequate, DoT can enforce the recoveries from the Airtel promoters.
“In the event of the assets of Airtel being insufficient to cover the dues, DoT can also have the corporate veil of Airtel lifted to also attach assets acquired and gains and profits made by promoters from diversion of funds payable to DoT by misusing the due-process of court including the personal assets and gains of the promoters arising from there,” said an analysis done by Manoj Kumar, Managing Partner, Hammurabi & Solomon.
The liability of Airtel under the DoT demand notices is clearly laid down in the clauses of the scheme of arrangement.
As per Clauses 5.1, “All liabilities of Tata-Tele relating to demerged undertaking shall stand transferred and vest into Airtel to become liability of Airtel”.
Clause 5.3 states that all liabilities and obligations of Tata-Tele relating to demerged undertaking shall be met, discharged & satisfied by Airtel.
Clause 5 reads, “All legal proceedings against Tata-Tele relating to the demerged undertaking e to be continued and enforced against Airtel in the same manner and extent it would have been against Tata-Tele”.
To invoke the last resort of lifting the corporate veil and acquire promoter assets, the shareholding structure would come into play.
No increase in fuel prices for 2nd consecutive day on Tuesday
Petrol and diesel prices remained unchanged for the second consecutive on Tuesday providing relief to consumers who have been facing a regular increase in fuel prices in the past few months taking the retail rates to historic high levels.
With no revision, the price of petrol in Delhi remained Rs 105.84 a litre and Rs 111.77 per litre in Mumbai, according to a price notification of state-owned fuel retailers. In Mumbai, diesel rates also remained static at Rs 102.52 a litre; while in Delhi it costs Rs 94.57, the same as on Sunday.
The price pause comes after the rates rose for four straight days when the rates of both petrol and diesel rose by Rs 1.40 paise per litre. There was no change in the rates also on October 12 and 13.
Diesel prices have increased on 19 out of the last 25 days taking up its retail price by Rs 5.95 per litre in Delhi.
With diesel prices rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country. This dubious distinction was earlier available to petrol that had crossed Rs 100 a litre-mark across the country a few months earlier.
Petrol prices had maintained stability since September 5, but oil companies finally raised the pump prices last week. Petrol prices have also risen on 16 of the previous 21 days taking up the pump price by Rs 4.65 per litre.
Crude prices have been on a surge rising over a three-year high level of over $ 85.7 a barrel now. It has softened a bit, falling below $ 85 a barrel now. Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $9-10 per barrel as compared to the average prices during August.
Markets open on a positive note
The 30-scrip Sensitive Index (Sensex) on Tuesday opened on a positive note during the morning trade.
The Sensex of the BSE opened at 62,156.48 points and touched a high of 62,159.29 points. The Sensex touched a low of 61,964.41 points.
On Monday, the Sensex closed at 61,765.59 points.
The Sensex is trading at 62,061.59 points, up by 296.00 points or 0.48 per cent.
On the other hand, the broader 50-scrip Nifty at National Stock Exchange (NSE) opened at lower note at 18,602.35 points after closing at 18,477.05 points.
The Nifty is trading at 18,549.55 points in the morning.
Petrol, diesel prices rise again, burn bigger holes in consumers’ pockets
Petrol and diesel price rose again on Friday taking its retail rates to record high levels across the country affecting consumers this festive season.
Accordingly, in the national capital, petrol and diesel prices increased by 35 paisa per litre to Rs 105.14 per litre and Rs 93.87 per litre, respectively.
In India’s financial capital of Mumbai, petrol became costlier by 34 paisa per litre to Rs 111.09 a litre on Friday, the highest across all the four metro cities. Diesel also costs Rs 101.77 for one litre in Mumbai.
The price hike on Friday is for a second consecutive day after the rates remained static on Tuesday and Wednesday.
Diesel prices now have increased on 17 out of the last 21 days taking up its retail price by Rs 5.25 per litre in Delhi.
With diesel price rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country. This dubious distinction was earlier available to petrol that had crossed Rs 100 a litre mark across the country a few months earlier.
Petrol prices had maintained stability since September 5 but oil companies finally raised its pump prices last week and this week given a spurt in the product prices lately. Petrol prices have also risen on 14 of the previous 17 days taking up its pump price by Rs 3.95 per litre.
OMCs had preferred to maintain their watch prices on global oil situation before making any revision in prices. This is the reason why petrol prices were not revised for last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
Crude price has been on a surge rising over three year high level of over $84.5 a barrel now. Since September 5 when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $9-10 per barrel as compared to average prices during August.
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