The Hindu : National : Status quo on transfer of UNI shares extended

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Friday, Oct 06, 2006
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Status quo on transfer of UNI shares extended

Staff Reporter

NEW DELHI: The Delhi High Court on Thursday extended till December 18 the maintenance of status quo on the transfer of equity shares of United News of India (UNI) to Mediavest Private Limited.

Extending the status quo, Justice Rekha Sharma directed Mediavest and the Registrar of Companies (RoC) to file written replies by the next date.

Meanwhile, A.S. Chandhiok, appearing for Mediavest, submitted that the UNI Board of Directors had transferred 60 per cent of its shares to his client before media company Sandhya Prakash Limited of Bhopal moved the court alleging that despite it being the highest bidder with Rs. 40 crores, UNI had decided to sell its majority shares to Mediavest which had struck the deal for Rs. 32 crores.

Mediavest had arbitrarily entered into an agreement with the RoC for transfer of shares against the Reserve Bank of India guidelines even though the plaintiff (Sandhya Prakash) was the highest bidder for the deal, the suit said.

It further stated that the plaintiff was not given any reason for the rejection of its bid.

The plaintiff, Sandhya Prakash, also alleged that due to mismanagement and siphoning of funds by the directors of the UNI, 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 value of the shares was negative, the plaintiff submitted.

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