NEWS & ADVICE : PERSONAL LOAN
BoR shareholders refused by SC for petition against merger
By Vaibhav Aggarwal
Jun 1, 2010
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A petition filed by minority shareholders of Bank of Rajasthan against the merger of the troubled bank with ICICI Bank has been declined by a vacation bench of the Supreme Court.

The bench asked the petitioner Ram Prasad Somani to go to some other bench of the Supreme Court with the plea. The bench consisted of Justices GS Singhvi and CK Prasad.

"No, we would not hear this petition," said Justice Singhvi. The petitioner had filed the petition saying that since the shares of the Tayal family who happen to be the promoters of BoR are under judicial scrutiny, they cannot be considered for merger or any kind of corporate restructuring.

"How can the Tayal group have a third-party right over those shares or can take a decision to merge BoR with ICICI Bank, particularly when there is a prohibition imposed by SEBI?" Somani said in his petition.

Earlier in 2009, Somani had also filed a case against the Tayals for increasing their stake in BoR.


 


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