An Indian court has ruled in favour of beleaguered telecom tower company GTL Infrastructure after saying that the appropriation of shares by lender IFCI was an incorrect move.
The court ruled that the financial consultancy group did not give notice…
An Indian court has ruled in favour of beleaguered telecom tower company GTL Infrastructure after saying that the appropriation of shares by lender IFCI was an incorrect move.
The court ruled that the financial consultancy group did not give notice before invoking GTL’s shares pledged as collateral for a loan.
In July, GTL Infra revealed that IFCI would be acquiring a 18.423% stake in the company. In effect, IFCI was converting the debt it holds in GTL Infrastructure into an equity stake in the company. Reports explain that IFCI took control of the shares after GTL Infra’s stock dropped sharply in late June.
In its judgment, the High Court of New Delhi wrote: “The acts of the defendant (IFCI) by appropriation of 17.6 crore shares to himself without notice are not correct, and all other consequential acts in relation to the said shares were inconsequential as no such right of foreclosure subsists under the law and the defendant.”
