The Hindu : National : UNI share transfer: status quo ordered

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Saturday, Sep 30, 2006
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UNI share transfer: status quo ordered

Staff Reporter

NEW DELHI : The Delhi High Court on Friday ordered maintenance of status quo on the transfer of equity shares of news agency United News of India to Zee Television owner Subhash Chandra-controlled company Mediavest Private Limited.

Justice Rekha Sharma gave the order on a suit by Bhopal-based media company Sandhya Prakash Limited.

Sandhya Prakash alleged that the UNI Board had decided to transfer 60 per cent of its shares to Mr. Chandra-controlled company despite the fact that it was the highest bidder for the purchase of 14,811 shares for Rs. 40 crore against Rs.32-crore bid by Mediavest.

Ms. Justice Sharma also issued notices to UNI, the Registrar of Companies (RoC) and the Mediavest.

Mediavest had arbitrarily entered into an agreement with RoC for transfer of shares against RBI guidelines even though the plaintiff was the highest bidder, the suit contended. The plaintiff also alleged that due to mismanagement and siphoning of funds by the UNI directors, its tangible net worth had been reduced to negative.

The accumulated surplus of UNI had been wiped out, paid up equity was eroded and the share value was negative, the plaintiff submitted.

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