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January 2019

DISHTV-VIDEOCON MERGER IN COURT



The Dhoots of Videocon & Chandras of Essel are related to each other by marriage.

The March 2018 merger between Essel group's DishTV & Videocon d2h is stuck in the Delhi High Court.


THE CHARGES

Domebell, a Videocon group company claims the Essel group unlawfully pledged Videocon D2H shares that were merely placed in their custody.

Nityank Infrapower and Multiventures Ltd. approached NCLT to prevent allotment of shares to Videocon group company Domebell. Nityank claimed it had a pledge on Videocon D2H shares owned by Domebell.

On August 31, Domebell obtained a stay from the Delhi High Court, against Nityank pledging the Videocon D2H shares in its custody.

Domebell said Nityank had given it an advance payment to sell Videocon D2H share @ ₹ 106 each. Essel took D2H shares as security & placed them in Nityank's custody. They would be forfeited to Essel if the merger failed.

Videocon group says Nityank subscribed to ₹ 1,626 crores in debentures on behalf of the Essel group as advance payment for Videocon d2h shares. The debentures were of Hindustan Oil Ventures a Videocon Group company.

Nityank's filing with the Registrar of Companies (ROC) show that it provided security for loans of approx. ₹ 1,600 crore taken by 3 Essel group firms. Hindustan Oil Ventures' debentures were security for these loans.



MONEY LAUNDERING ALLEGATION

The Serious Fraud Investigation Office (SFIO) is reportedly investigating Nityank (formerly Dreamline Manpower Solutions) for its large deposits & withdrawals during demonetisation.

In its official response to press queries, Essel group said "Nityank Infrapower and Multiventures Ltd. is not an Essel Group Company and all the allegations are completely baseless and infructuous." n