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Encore files suit against Hindujas
Pankaj Joshi
Mumbai, Dec 2: The Encore group of companies has filed a Rs 1,312-crore suit against the Hinduja group, its former partner in the cable television business. The point of dispute, according to a press release issued by Encore, is refusal on the part of the Hindujas to honour their commitments "in respect of shareholding committed and promised". The case is expected to come up for hearing in the Mumbai high court some time next week. The Hindujas have declined to comment on the matter. The Encore group, founded in 1989, was approached by the Hindujas when they entered the field in 1992. The agreement was for setting up a nationwide cable television network. However, the alliance split in 1998.A MoU was signed between them, on the basis of which the Encore group claims to be eligible for compensation of Rs 312 crore. The residual Rs 1,000 crore is claimed as damages. The Encore group, after initially being promised 40 per cent stake free of cost in the Hinduja Media Companies, ultimately found itself agreeing to a reduced stake of 6 per cent in IndusInd Media & Communication. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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