CG Power scraps royalty pact with Avantha Holdings

CG Power and Industrial Solution (CGPL) has scrapped its Rs 411.2-crore royalty agreement with Avantha Holdings (AHL) that was partially used to settle the outstanding dues from AHL, the company said in a statement.

“The company has intimated AHL of rescinding the royalty agreement and consequently does not have any liability towards payment of brand royalty including the monetisation proposal,” CG Power said in a statement. As per the royalty agreement, a 50% brand loyalty was to be paid by CG Power to AHL in perpetuity aggregating to Rs 411.2 crore.