DLF Moves SC To Seek Rs 580-Crore Penalty Exemption – Financial Express – 20-Nov-2014
November 20, 2014 - Uncategorized
Real estate company DLF has moved the Supreme Court seeking exemption from paying the balance amount of R580 crore from the R630-crore penalty imposed by competition watchdog CCI for abusing its dominant market position with regard to a residential society in Gurgaon. Instead, it wants to offer land worth R580 crore as security for the balance amount.
While admitting the DLF’s appeal, the SC had in August refused to stay the Competition Appellate Tribunal’s May 19 order that confirmed the penalty of R630 crore imposed by the CCI.
In an interim order, the SC said that DLF shall deposit R50 crore out of R630 crore within three weeks and balance R580 crore within three months with its Registry, which in turn shall invest the amounts in a nationalised bank. It also asked DLF to give within three weeks a fresh undertaking that in the event of dismissal of its appeal the firm will deposit accumulated interest at the rate of 9%, as directed by the tribunal, or such amount as asked by the SC.
The firm was to pay the entire penalty amount by November 25. The company has till now only deposited R50 crore, but has now sought an exemption to deposit the balance amount. Seeking waiver of obligation to pay the balance amount, DLF in its fresh application said that it can provide land as security of equal amount.
Sebi order has seriously crippled its ability to service its financial requirements as it barred it from accessing the securities market, DLF said, adding that it will be unable proceed with the shareholder resolution of raising R5,000 crore via non-convertible debentures.
“Due to unavailability of funds which would otherwise have been raised by way of non-convertible debentures…, the applicant had no option but to seek redemption of mutual funds which was permitted by SAT after considering the requirement of applicant to service the repayment of loan and principle amount availed by it from various banks/NBFCs/Financial institutions,” the application stated.