Adanis' Rs 400 crore cold storage project hits a snag

The Delhi High Court on Thursday restrained the Adani group from going ahead with its cold storage project worth Rs 400 crore, following a complaint from Container Corporation of India (Concor) that the group had 'hijacked' its cold storage project knowhow.

Granting an ex-parte stay on the Adani groups' venture, which was similar to Concor's "cold chain project", Justice O P Dwivedi also restrained Concor's former-managing director A K Kohli, at present heading Adani Logistics, from divulging any of the trade secrets relating to the project.

"Kohli is restrained from commencing, implementing or being involved in any similar project on the basis of the knowhow relating to Concor's cold chain project," the judge said after hearing Pratibha Singh, counsel for Concor.

According to Concor, Kohli, while being the managing director, was passing on the trade secrets of the project including evaluation reports of the project carried out by experts, to Gautam Adani, the chairman of the group.

Levelling serious allegations against the former MD, Concor said Kohli was instrumental in stalling the project before his resignation on March 21, 2005, from the company prior to joining the Adani group company. He relinquished charge on March 22.

On the very next day of relinquishing the charge, a news item was published in media saying the Adani group was investing Rs 400 crore in the cold chain project, Concor said.

Accusing Kohli of committing misconduct of passing on to the private party information relating to valuation, logistics and technology of the project, the railways-owned company said this act of breach of confidence by its MD had caused it immense loss.

Claiming copyright in the cold chain technology, Concor contended that Kohli had been colluding with Adani to "hijack the plaintiff's project and had succeeded in getting the project abandoned."

While restraining Kohli from further associating with any projects similar to cold chain project, Justice Dwivedi said that Kohli, "a government servant, has allegedly misconducted himself by passing on the entire technology and knowhow relating to the project (to the Adani group), causing loss and breaching confidence."

Giving details of the cold chain project concept, Concor said the idea was to set up controlled atmosphere, chilled and deep freezed stores to provide fruits and vegetables grown in one area to the other areas in the country ensuring their availability during the off season as well.