Centre intervenes in UNI stake sale issue | india | Hindustan Times
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Centre intervenes in UNI stake sale issue

india Updated: Sep 26, 2006 05:07 IST

The Government on Monday intervened on the UNI takeover issue by asking the board of directors to postpone its meeting scheduled for Tuesday till the Government examines the proposal to transfer majority shares to Essel group owned by Zee group.

I&B Minister PR Dasmunsi told reporters that he had spoken to UNI Chairman who has agreed for postponement of the meeting.

“We had suggested to defer the meeting by a month by which time the Government can firm up its view on the matter after consulting stakeholders,” he said.

The board and shareholders were scheduled to meet amid reports that Essel Group Chairman Subhash Chandra was acquiring 60 per cent stake, a move strongly opposed by the agency employees and the Left parties.

Dasmunsi said the Government would hold meetings with the managements of UNI and Essel Group over the month, apart from discussing the issue with the unions.

"It would also be discussed within the Government," he said.

The minister said the Government will also look into the "legal framework" to see how to protect the rights of the employees of UNI.

Noting that UNI was registered under Section 25 of the Companies Act, he said the exemptions granted to UNI would need to be reviewed in the backdrop of the current situation.

"As per law, a company has right to dispose its equity. But the catch here is that if the organisation enjoyed enough subsidy, what is the fate of that subsidy," he said.