RIL, Jain pumped in Rs 180 cr to pick up 33% in Sea King arm

Mumbai, Nov 24 | Updated: Nov 25 2005, 07:45am hrs
Its now official. Reliance Industries Ltd (RIL) and the company promoted by chairman and managing director Mukesh Ambanis close confidant Anand Jain pumped in Rs 180 crore to pick up 33% stakes in a shell company formed by Sea King India Ltd (SKIL).

SKIL is the lead consortium member of NMSEZ Development Company which has been awarded contracts by the state-run City and Industrial Development Corporation (Cidco) for the development of Navi Mumbai special economic zone.

The funds pumped in by RIL and the Anand Jain-promoted company are expected to be used for debt financing in the project. The acquisition of equity by RIL and Pet Fibre in SKILs shell company has not violated the provisions of request for proposal floated by Cidco.

Cidco, in its affidavit filed before the Bombay High Court, has submitted that it has already carried out requisite due diligence in respect of the acquisition of equity by RIL and the Anand Jain-promoted company in the shell holding company formed by SKIL.

After being prima facie satisfied that the changes in the shareholding are in accordance with the bid documents, placed the requisite facts before the Maharashtra governments high power committee (HPC) for its consideration. The HPC in its meeting held on November 10 has deliberated upon the issue and considered the entire matter in detail.

Shell On The Sea Shore
SKIL is the lead consortium member of NMSEZ Development Company which has been awarded contracts for Navi Mumbai SEZ by state-run Cidco
The equity acquisition by RIL and Pet
Fibre in SKIL's shell company has not violated provisions of request for proposal floated by Cidco
Cidco has filed its affidavit on a writ petition filed by Anik Development Corporation, Gammon India, Mumbai SEZ Development Company and Nayan Shah, challenging the matter of selection of preferred bidder and withdrawal of Videocon International as the leader of the consortium in the development of Navi Mumbai SEZ. The high court will hear the matter after four weeks.

Cidco argued that the decision to award the Navi Mumbai SEZ project to the H-1 bidder consortium and to continue with the same despite change of the lead consortium member was judiciously taken after considering all relevant material on record in consultation with the external consultants by the HPC and same does not suffer from any infirmity.

NMSEZ Development Company in its affidavit said that financial closure of the entire debt (Rs 660 crore) and equity (Rs 330 crore) of phase-I has been achieved and it has been notified by Cidco.