The IL&FS Group will find it easier to unlock its investment in Mangalore Special Economic Zone (SEZ) joint venture (JV) at fair value. In a recent order, Oil and Natural Gas Corporation’s (ONGC’s) claim, which sought to buy the stake at discounted value, was termed as unwarranted.
IL&FS holds a 49 per cent stake in the Mangalore SEZ JV, while ONGC holds 26 per cent. Kanara Chambers of Commerce, Karnataka Industrial Area Development Corporation, and ONGC Mangalore Petrochemicals are the remaining shareholders in the JV.
“Justice (Retd) D K Jain, terming ONGC claim as unwarranted, has dismissed the case, allowing IL&FS to sell its stake in Mangalore SEZ at fair value,” said a person privy to the development. The order, sources said, was given earlier this month.
