Esselgroup keen to take over AgriGold

Hyderabad: Dr Subhash Chandra Foundation, a not-for-profit group company of Esselgroup, that includes Zee TV, has informed the High Court at Hyderabad that it is interested in take over AgriGold group as a going business. The Delloitte firm filed an additional affidavit on Monday to this effect, revealing that the name of the interested party that was kept secret in the primary affidavit and to which the Court had expressed reservation.

Senior counsel Raghuram appearing for Delloitte firm informed the division bench comprising of Justice V Ramasubramanian and Justice S V Bhatt that the Foundation would require four months’ time to complete due diligence of the AgriGold assets and liabilities.

The bench was hearing a Public Interest Litigation (PIL) petition filed by the Telangana Agri Gold Customers and Agents Welfare Association seeking a CBI probe into the scam and repayment of monies to the depositors. Raghuram informed the bench that the Foundation is willing to take over all the 175-odd companies of the AgriGold group even by paying thousands of crores. After due diligence, if needed, the Foundation is ready to pay Rs 1,000 to Rs 2,000 crore, he submitted.

The bench questioned the senior counsel as to the scenario if due diligence the Foundation decided to back out. It suggested that a certain amount needed to be deposited to show the bona fides and for arriving at the figure to be deposited, the bench proposed to calculate the amount required for repaying the small and marginal deposits less than Rs 5,000.

It directed the AgriGold company to submit details of deposits less than Rs 5,000, between Rs 5,000 and10,000 and Rs 10,000 and 20000 of not only in Telugu States but in all the States wherefrom deposits were collected. It also directed the CID, AP, to give its figures, so that a cross-check can be made.

The counsel for the petitioner submitted an affidavit, suggesting that the Court may take up the proposal being made by the interested party subject to certain precautions and conditions. He suggested that the interests of the small and marginal depositors must be met in a priority manner and also sought reduction of time for due diligence from four to two months. The bench did not agree on reducing the time, but expressed concurrence in meeting the needs of small and marginal depositors first.

MMR. Group which had bid for twice the amounts fetched in e-auction of four properties submitted a cheque for Rs 4.11 crore as 25 per cent of the amount to the court on Monday. The remaining 75 per cent would be given by September 30. The bench adjourned the case to September 14.

Chennamaneni gets relief

Justice Challa Kodanda Ram of the High Court at Hyderabad on Monday suspended the order of the Union Home Ministry that cancelled the Indian citizenship of Vemulawada TRS MLA Chennamaneni Ramesh. The Centre went through the material placed before it and concluded that Ramesh had suppressed the facts and accordingly cancelled his Indian Citizenship. An aggrieved Ramesh filed a Writ Petition before the High Court.

Adi Srinivas who unsuccessfully contested against Ramesh in the elections filed a complaint with the Union Home Ministry, saying that Ramesh had long been settled in Germany after taking membership there and he did not qualify to become an Indian citizen after returning in 2009 when he became an MLA from his native Karimnagar district. The judge suspended the Centre's order for six weeks after hearing his plea.

By Legal Correspondent