ADHIR RANJAN CHOWDHURY Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) By this public interest petition, the petitioner who is stated to be an ex-MLA and a Member of Parliament has challenged the transfer of share of the respondent no. 5, Metro Dairy Limited (for short, 'MDL') to the respondent no. 10, Keventer Agro Limited. (for short, 'KAL').

(2.) The respondent no. 5, MDL was a limited company incorporated under the Companies Act, 1956 in pursuance to the joint venture agreement dated 31st of May, 1993 executed by the respondent no. 7, West Bengal Corporative Milk Products Limited, (for short, 'BEN', respondent no. 10 and the National Dairy Development Board, (for short, 'NDDB'). The share holding pattern of the MDL since inception was as follows:

(3.) Subsequently, NDDB had sold its 10 % shares to ICICI and the same were acquired by the respondent no. 10, KAL, on 21st of March, 2014. The plea of the petitioner in the writ petition is that by the newspaper reports in or about 22nd of August, 2017, the petitioner came to know that the respondent State was considering the proposal to disinvest the equity on MDL for which in May, 2017, e-auction open tender was floated and the respondent no. 10 had submitted a bid to buy out the shares. It is stated that the respondent no. 10 had offered Rs.85.5 crores as against the base price of Rs.85.43 crores and on 24th of August, 2017, the petitioner came to know through the newspaper reports that West Bengal Cabinet had approved the proposal to disinvest the Government's equity in MDL. Thereafter, disinvestment was carried out and respondent no. 10 became the owner of 100 % shares in MDL. The allegation in the petition is that the shares have been sold to respondent no. 10 at a very low price without following any transparent process and without any justifiable reason. The prayer in the writ petition is to appoint a high powered committee headed by a sitting Judge of the High Court to investigate the transfer of shares, to declare the transfer of shares of MDL as illegal and recall the transaction and also to declare the e-auction process to be colourable exercise of power.