Restoration of 11 p.c. stake to APIIC in joint venture

The A.P. Industrial Infrastructure Corporation (APIIC) on Tuesday placed before the Board of Directors the opinion of the Solicitor General on the offer of the Rahejas to restore to the Corporation 11 per cent stake in the joint venture, Raheja Mind Space project, at Madhapur.

However, the Board deferred a discussion on the issue to the next meeting scheduled on December 27.

It may be mentioned that the Corporation had given notice to the Rahejas for reducing APIIC's stake from the original 11 per cent to 0.6 per cent, in violation of original agreement. APIIC Chairman Shivarama Subramanyam referred the proposal sent by the Rahejas Board to the Solicitor General who gave a favourable response. The Chief Minister was also informed of the legal expert's opinion.

The restoration of 11 per stake to APIIC in the joint venture would yield it close to Rs.2,500 crore, it is said.

Giving the details to media persons after five-hour-long board meeting, Mr. Subramanyam said that the board also discussed the loan raised by the joint venture partner of the Lepakshi Knowledge City and decided to take legal view on the matter.

The Board also discussed the Emaar Properties' offer to restore 26 per cent stake to APIIC in the Integrated Township project and also remove the Emaar MGF as the developer and refer the issue to the Chief Minister. The offer letter of the Emaar Properties was also forwarded to the CBI which was inquiring into the issue.

On the proposal of disinvestment in joint venture projects, the Board directed the officials to place the details of the Corporation's stake in 22 joint venture projects in the next meeting.

The Board decided to instruct Collectors of Anantapur, East and West Godavari districts, Visakhapatnam, Ranga Reddy and Medak districts to acquire 7,000-8,000 acres of land for industries.