The matter of the Sarder Sarovar Narmada Ltd?s (SSNL) deep discount bond issue got further complicated as yet another petition was filed against the compulsory redemption notice issued by it. This time, a trust of Hotel Janpath Employees Provident Fund has moved the SC alleging SSNL cannot unilaterally seek premature redemption of deep discount bonds. Earlier in November 3, 2008, the board of SSNL had issued a notice to bond holders announcing that the deep discount bonds issued in 1993 at a Rs 3,600 a bond were to be redeemed at Rs 50,000, the price mentioned in the prospectus.
Earlier, the board had tried to have the redemption done in 2004, but the move had misfired. Subsequently, SSNL (Conferment of Power to Redeem Bonds) Act 2008 empowered the company to call back the bonds, even without having prior bond holder consent.
