IOC seeks refund of HPL earnest bid money

 Indian Oil Corporation, sole bidder for stake in Haldia Petrochemicals Limited, has sought the release of their earnest bid money, indicating withdrawal from the sale process.

"We have written a letter asking for the earnest money of around Rs 20 crore (Rs 200 million) submitted for the bid," an IOC official told PTI.

IOC was the sole valid bidder and the West Bengal government had accepted its bid in October 2013.

"The IOC board had given a conditional nod that the company could participate in the HPL sale process only with management control," the official said.

IOC is of the view that the recent developments on the leagal front between the state government and another promoter The Chatterjee Group (TCG) will delay a final order on the 155

million shares in question, he said.

HPL management's control will go to the promoter who gets access to the 155 million shares block.

TCG has got right to contest its claim on those 155 million shares at the international court of arbitration.

West Bengal Industrial Development Corporation officials didn't deny the development, but declined to comment.

The state government had sought a bid for its entire stake, which is close to 40 per cent, and hoped to get legal clearances for the 155 million shares in question to offload.

IOC currently has 8.89 per cent stake in HPL, with the Tata group and financial institutions being the other minority shareholders.