Vodafone has filed another application in the Madras High Court, asking to make the Securities and Exchange Board of India (SEBI) a party in the case against Essar’s proposal to merge two subsidiaries, say news reports.
Essar has proposed to merge Essar Telecommunications Holdings Private Limited (ETHPL), which has 11 per cent stake in Vodafone-Essar, with India Securities Limited to determine fair market value of its stake in the joint venture.
The case will now come up for hearing on April 1, 2011. The Income Tax department has also raised an objection before the Madras High Court for the scheme of amalgamation of ETHPL with ISL, saying the company has arrears of around Rs 4.87 billion for 2008-09.
This is, however, countered by the Essar group, which claims that the said arrears are on the holding company and it cannot impact the merger. Essar has also said that Vodafone’s fresh application is aimed at delaying the proposed merger.
Vodafone filed three applications on March 25, 2011, of which two applications sought to implead market regulator SEBI as a party and hearing on the case, while another was on valuation.
