The Neeraj Singhal-led Bhushan group, one of the three suitors for Orissa Sponge, has asked the Company Law Board (CLB) to restrain Orissa Sponge’s promoters from any share transaction and cancel the equity accumulated by them through “tainted transactions.”
The CLB intervention has been sought in a fresh application attached by the Bhushan group to its previous petition filed with CLB last month, where it had accused the Mohanty family — the promoters of Orissa Sponge — of “siphoning off company’s fund.”
A Bhushan Group company, BNS Steel Trading, has requested the CLB to cancel 77,98,916 shares of Orissa Sponge, equivalent to about 29 per cent stake in the company. “...The respondents be restrained from acquiring any further shares and alienating, transferring and selling any of their shares in Orissa Sponge Iron and Steel Ltd (OSIL)... To any third party/inter se and that the voting rights of the respondents in respect of such shares be suspended or frozen,” the Bhushan Group said in its application filed by advocate Ranjana Roy Gawai.
Gawai refused to comment, saying that the matter was subjudice. Bhushan Group MD Neeraj Singhal also refused to comment. Orissa Sponge Director Muneer Mohanty did not respond to queries.