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The Anil Ambani Group, through its subsidiary Reliance Power Ltd, moved to a division bench of Bombay high court to restrict the Edelweiss Group from selling its pledged shares on Monday, after the petition filed by the group on the matter to a single-judge bench last week was dismissed.
The Reliance Group companies suffered a major crash in their share prices when a sum of four financial institutions (NBFCs) sold a number of pledged shares of the group companies during the first week of February. According to the Reliance Group, the uninitiated sale of shares cost the group Rs. 13,000 crores in market capitalization. The Group also called the move by the financial institutions “illegal”.
Darius Khambata, the senior advocate representing Reliance Project Ventures and Management Pvt. Ltd and Reliance Wind Turbine Insulators told the bench, “The group (ADAG) has reached an agreement with more than 90% of lenders under which they won’t sell any shares pledged by promoters until September. This is a new development since we have challenged the earlier order.”
He added, “But, here is a case where the lender has sold off shares without even intimating the company. Also, there are some changes we want to make after the order came late last week and hence we are seeking further time to modify our plea.”
The division bench headed by chief justice N.H. Patil and justice N.M. Jamdar has grated Reliance Group a week to add fresh details in its petition and will hear on the matter on 26 February.
