Anil Ambani-owned Reliance Power Ltd. (RPL) failed to get any relief in the matter related to the sale of pledged shares by Edelweiss as the Bombay High Court dismissed the company’s petition seeking a stay on further sale of such shares.
While Justice K. R. Shriram dismissed the petition seeking the stay, he would hear the matter relating to damages claimed by RPL and also the plea for declaring the share sale illegal and void.
The judge said he will hear the petition in detail on merit over other prayers made by RPL such as declaring the above sale illegal and void, and seeking compensation from Edelweiss for the financial and reputational losses following the liquidation of its shares.
The petition was filed by Reliance Project Ventures and Management Pvt. Ltd. late on Tuesday with the court listing the matter for hearing on Wednesday.
Rcom’s bankruptcy
RPL moved the high court after Edelweiss and L&T Finance sold shares of RPL pledged with them.
The sale followed a steep fall in the share price of the company after Reliance Communication filed for bankruptcy.
Incidentally, the petition was filed only against Edelweiss and not L&T Finance.
The company had also complained to the Securities and Exchange Board of India (SEBI) wherein it sought an investigation into the sale of its shares by Edelweiss for alleged fraudulent activities and also declare the financial services entity not “fit and proper”.
The company alleged that Edelweiss “conducted an altogether unwarranted fire sale of Reliance Power shares on screen not only in the cash segment but also in the futures market through their own broking entities.”
Appearing for Edelweiss, senior advocate Janak Dwarkadas said that Edelweiss was well within its rights to sell the pledged shares.
