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Thursday, 19 May 2016

High Court bars SpiceJet from diluting promoter stake

In a setback to SpiceJet, the Delhi High Court on Wednesday prevented the airline from diluting its promoter shares and restrained it from creating any third party rights. While giving partial relief to Kalanithi Maran, Justice Manmohan Singh said that BSE was acting under the “influence” of SpiceJet. “We were given the impression that warrant
issue is only a matter of procedure. But warrant issue is now stuck in back and forth between the parties,” the judge said, posting the matter for further hearing on May 27.
The court directed SpiceJet to file its reply to the proposal regarding return of the amounts already paid to it by Maran, who has sought a refund of R690 crore that was paid by him and KAL Airways during transfer of ownership of SpiceJet Ltd to Ajay Singh in 2015.
The order was passed after BSE told the court that it cannot allow resolution for warrant issue under the current rules and Sebi too rejected the possibility of it making an issue in favour of Maran and KAL as the rules don’t permit relaxation of norms for individual cases.

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