SHCIL unit folded into parent
The SHCIL has acquired the controversial Singapore-based subsidiary of its associate SHCIL Services Ltd, Unitec Value Solutions, reports Suman Layak.Updated: Jul 23, 2007 05:20 IST
The Stock Holding Corporation of India Ltd (SHCIL) has acquired the controversial Singapore-based subsidiary of its associate SHCIL Services Ltd, Unitec Value Solutions, according to SHCIL’s director RK Bansal.
This company had landed in a controversy linked to government project on electronic implementation of stamp duties (e-stamping) handled by the parent SHCIL. The technology agreement for this between Stock Holding and Singapore firm Crimson Logic was routed through Unitec and it is alleged that the fees for Unitec were inflated to 10 million Singapore dollars, twice the actual amount needed.
Now, with Unitec becoming a 100-per cent subsidiary of SHCIL, the fees payable to it by SHCIL becomes meaningless. Bansal said, “Now we can enter into a fresh agreement with Unitec for a lower fee or change the agreement as we please.”
The company has been acquired from SHCIL services for its total paid-up capital of 100,000 Singapore dollars (around Rs 27 lakh). The share transfer was completed earlier this month.
Unitec Value Solutions had entered into an agreement with SHCIL to bring in the technology for the e-stamping project and apart from the fee, it was also entitled to a four per cent royalty on revenues.
Apparently Crimson Logic, the company that has the technology, wanted to sign a technology sharing agreement with a Singapore-based company for the Indian project, bringing Unitec into the picture.
However, SHCIL has alleged in a petition to the Company Law Board that the company itself had been in a position to sign an agreement with Crimson for a lower fee and the then chairman of SHCIL, R Jayaraman Iyer, had engineered a complicated deal through Unitec. RK Bansal, who had taken over from Iyer in April, had initiated the move to buy out Unitec in an effort to solve the problem. Iyer has not been available for his comments in repeated attempts by Hindustan Times to get his views.