Corporate major Unitech has dragged to court telecom tower firm Independent Mobile Infrastructure (IMIL), founded by a former Goldman Sachs banker, for non-payment of dues totalling over Rs 7 crore.
The dispute relates to supply of telecom towers from Unitech Power Transmissions to IMIL, which was set up in 2006 as an independent telecom tower operator by Jide J Zeitlin through his private equity firm Keffi Group.
Zeitlin, who has been a senior investment banker with Goldman Sachs, was in September nominated by the US President Barack Obama as the US Representative to the United Nations for UN Management and Reform, with an Ambassador rank.
Pursuant to a winding-up petition filed against IMIL by Unitech Power Transmissions, a subsidiary of realty major Unitech, the Delhi High Court on September 17 passed an ex-parte order, asking the official liquidator attached to the court to take over all the assets, books of accounts and records of the telecom tower firm.
The court, in its order, observed that no representative from IMIL appeared before the court despite the notice being served in relation to the winding-up petition against it.
IMIL later approached the court to challenge the ex-parte order, after which the court issued a notice to Unitech to reply to the telecom tower firm's submission, a company official said.
In its reply, Unitech sought dismissal of IMIL's application to set aside the ex-parte order and said that Zeitlin was "not at all" interested in managing this Indian business after getting a key assignment by the US government.
"The petitioner understands that the Chairman of the respondent company (Zeitlin) is based in USA and now has been nominated US Ambassador of United Nations by the US government. Therefore, he is not at all interested to manage this business in India and to take care of the outstanding liabilities of the respondent," Unitech's reply said.
Zeitlin was also nominated as Alternate Representative of the US to the UN General Assembly sessions during his tenure of service as Representative of the United States of America to the United Nations for UN Management and Reform, according to a statement from the White House on September 24.
Zeitlin retired from Goldman Sachs in 2005, after which he founded IMIL in India and also invested in private biotechnology companies globally.
When asked about the case, IMIL's Company Secretary Sanjay Tiwari told PTI in an emailed statement that IMIL was "in the process of verification of Unitech's claims".
"Upon learning of the ex-parte order, IMIL, through its legal counsel, immediately appeared before the court and challenged the order by way of an application for setting aside the ex-parte order," Tiwari said.
"The application was heard by the High Court on October 13, 2009, whereupon the court has been pleased to issue notice to Unitech to reply. The matter is now listed for arguments in March 2010," Tiwari said, adding that IMIL continues to aggressively defend all legal actions whilst actively maintaining its business operations.
Asked about Zeitlin, the company declined to comment and said it would be "misleading and improper" to conflate Zeitlin, a private investor, with these corporate actions.
Zeitlin also serves as Chairman of the Board of Trustees at Amherst College and is a member of Harvard Business School Board of Dean's Advisers, besides many other board positions.
Asked about reports that IMIL was planning to shut shop in India, Tiwari said: "This market rumor is incorrect. The management of IMIL believes in its vision for the company, and continues to work towards achieving it.
"Although third-parties have expressed interest in acquiring IMIL, the company is committed to executing its business plan in an industry that remains as attractive as ever. IMIL appreciates the strong support for its activities shown by a number of vendors and other stakeholders," he said.
The dispute relates to an order to Unitech for supply and erection of 141 towers, which was later reduced to 137 towers. Of this, 103 towers have already been supplied and erected for IMIL, while 34 remaining towers are left with Unitech.
Against the supply of 103 towers worth about Rs 8.5 crore, Unitech was paid about Rs 5.2 crore, leaving an outstanding balance of about Rs 3.3 crore.
Besides, Unitech was paid Rs 8.68 lakh for erection of 103 towers, leaving an outstanding balance of Rs 1.01 crore. These two outstanding payments together with about Rs 2.5 crore towards the 34 towers that IMIL has not taken delivery, and the interest charges take the total dues to over Rs 7.5 crore, Unitech submitted in its petition.
