New Delhi (Uttam Hindu News): Two brothers of Ashok. Mittal and Ram Parshottam Mittal i.e. ‘R.P.M.’ A petition has been filed in the NCLT regarding the dispute between. Mittal controls the shareholding, management and control of Hotel Queen Road Pvt Ltd ‘HQRPL’, which owns the hotel property known as “hotel Royal Plaza” in the national capital. The petition seeks to confirm that HQRPL is a public company.
In this, an attempt has also been made to declare that R.P. has been removed from the post of Director in EOGM. The removal of Mittal and Sarla Mittal is legal and valid. Also, the rights issue was legal and valid in July 2009. R.P.Mittal received notice for subscription of shares. He refused to buy the shares voluntarily, so R.P. Mittal Group cannot be allowed to challenge the rights issue. Ashok K from 14 January 2009. Mittal Group controls and manages HQRPL, which holds 91.76 per cent shares. R.P.Mittal Group is in minority with only 8.24 per cent shares.
In 2002, a demerger plan was approved in terms of the disinvestment plan of ITDC, under which the hotel assets were transferred to a newly incorporated company, HQRPL. On 30 September 2002, HQRPL (which was then under Government/GoI control) called an EOGM, where a special resolution was passed to convert the company into a public limited company. When Ashok Mittal got control of HQRPL in January, 2009, the company’s account was declared NPA and there was only Rs 2.82 lakh in the bank account.
The hotel rooms were not good nor did the hotel have a good banquet hall or swimming pool or gym. As the Asian Games were approaching, the hotel needed renovation and upgrading to meet international standards. In view of the dire need of funds, HQRPL decided to conduct a rights issue of shares and accordingly made an offer letter on September 30, 2009. Even though the market value of the shares was determined by a valuer at Rs 143 per share, HQRPL offered each share at a fair price of Rs 40 (10+30).
R.P.Mittal filed an application seeking a stay on the rights issue. The High Court, by order of 18 August 2009, refused to stay the rights issue and said that while the rights issue is for the benefit of the company, the rate at which the shares are being offered is significantly lower than the market price. The court said that if R.P.Mittal subscribes, he will continue to be a major shareholder and if R.P.Mittal chooses not to subscribe, the said action will be the result of his own volition.