Pawan Hans Disinvestment: Centre Calls Off Strategic Sale As Winning Bidder Disqualified
Pawan Hans is a 51:49 joint venture of the government and ONGC
The central government on Monday decided to call off the strategic disinvestment of Pawan Hans as the successful bidding consortium Star9 Mobility Pvt Ltd was disqualified in view of pending legal cases, reported the PTI. Pawan Hans is a 51:49 joint venture of the government and ONGC.
The Centre had in April last year decided to sell the helicopter service provider for Rs 211.14 crore to Star9 Mobility Pvt Ltd, a consortium of Big Charter Private Ltd, Maharaja Aviation Private Ltd, and Almas Global Opportunity Fund SPC. However, in May the sale process was put on hold after it came to light that the lead member of the winning bidder consortium, Almas Global Opportunity Fund SPC, has a case pending against it at the National Company Law Tribunal (NCLT).
According to news reports, the government put the sale on hold after the Kolkata bench of the National Company Law Tribunal (NCLT) passed an adverse order against AGOF for willful contravention of an approved resolution plan for another company, EMC Ltd, and forfeited its performance bank guarantee of Rs 30 crore.
In a statement, the Department of Investment and Public Asset Management (DIPAM) on Monday said the government has examined the adverse orders of the NCLT and NCLAT, according to the PTI.
"After careful consideration of the response of the successful bidder to the show cause notice, with the approval of alternative mechanism ...the government has decided that successful bidding consortium M/s Star 9 Mobility Pvt Ltd is disqualified from the process of strategic disinvestment of Pawan Hans Ltd... Further, the current EoI process for strategic disinvestment stands annulled," the DIPAM said.
Alternative Mechanism comprises Minister of Road Transport & Highways, Minister of Finance and Minister of Civil Aviation.
Notably, the government has since 2016 made four failed attempts for the disinvestment of Pawan Hans.
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