UK fund files petition against Coal India, ministry
Posted on: 06:20 AM IST Aug 02, 2012
New Delhi: The Children Investment Fund Management (UK) Llp, or TCI, on Wednesday filed a petition in the Delhi High Court against India's coal ministry and Coal India Ltd challenging their moves to keep the prices low.
The TCI, which has less than 2 per cent stake in the company, claimed that the ministry had no legal authority to interfere with the decisions of Coal India ltd and that the selling of coal at lower prices harmed shareholders by lowering profit.
Coal India, the world's largest coal miner, has been under pressure from TCI, after it bowed to pressure from the government in January and reversed an increase in coal prices.
It has sought a direction by the High Court to the ministry not to interfere with the pricing mechanism in any manner as selling coal at a lower price harmed shareholders by lowering profit.
TCI in its complaints against the miner earlier this year highlighted the problems arising out of government interference in the working of public sector companies, and were seen as generating awareness about shareholder activism in India.
Coal India fell 2.73 per cent to Rs 349.50 on BSE on Wednesday. The benchmark Sensex was nearly unchanged at 17,257.38 points.
With Additional Inputs From Moneycontrol