Annexure XIV Continued… - Edelweiss

OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS
Except as stated below there are no outstanding litigations, suits, criminal or civil prosecutions, proceedings or
tax liabilities against our Company, our Subsidiaries, Directors, Promoters and Group Companies, and there
are no defaults, non-payment of statutory dues, over-dues to banks/financial institutions, defaults against
banks/financial institutions, defaults in dues payable to holders of any debenture, bonds and fixed deposits and
arrears of preference shares issued by our Company, defaults in creation of full security as per terms of
issue/other liabilities, proceedings initiated for economic/civil/any other offences (including past cases where
penalties may or may not have been awarded and irrespective of whether they are specified under paragraph (I)
of Part 1 of Schedule XIII of the Companies Act) other than unclaimed liabilities of our Company or
Subsidiaries and no disciplinary action has been taken by SEBI or any stock exchanges against our Company,
Promoter or Directors. Unless stated to the contrary, the information provided below is as of the date of this
Draft Red Herring Prospectus.
I. Litigation involving our Company
Outstanding litigation and proceedings initiated against our Company
Criminal
1. Case RC No. 124 2009 A0007 under section 120B, 420 and 406 of the Indian Penal Code read with
Section 13(4) of the Prevention of Corruption Act, 1988 by Central Bureau of Investigation
A case (RC 124 2009 A0007) under section 120B, 420 and, 406 of Indian Penal Code (“IPC”) and under
section 13(4) of Prevention of Corruption Act, 1988 (“PCA”) was registered by the Central Bureau of
Investigation (“CBI”) Bhilai Branch against our Company for the alleged pilferage of coal reported in an
article published in a local newspaper. The issue in the case actually pertained to the dispatch of beneficiated
coal to Suratgarh power station of Rajasthan Vidyut Utpadan Nigam Limited (“RUVNL”) instead of
dispatching the same to another power station of RUVNL situated at Kota. Pursuant to the said case, a search
was conducted at the Corporate Office of the Company on September 9, 2009 wherein, certain documents
were obtained by the CBI from our Company. A search list detailing the documents obtained by the CBI was
provided to the Company. The Company is not aware of the status of the case, other than the aforementioned
search list, as it has not received any notice, intimation or documents in respect of the aforesaid case.
2. Case RC No. AC2-2010-A-0002 under section 120B of the IPC read with sections 7 and 12 of the PCA
by the CBI against Mr. M.P. Dixit, Chairman cum Managing Director of South Eastern Coal Field
(“SECL”) and others
A case (RC No. A2 2010 A0002) was registered by the CBI on May 25, 2010 under section 120B of the IPC
read with section 7 and 12 of the PCA against Mr. M.P. Dixit, who was the Chairman cum Managing Director
of SECL and certain other persons allegedly involved in receiving/giving illegal gratification. Our Company is
not a party to this case, however, during the course of investigations against Mr. M.P. Dixit, the CBI
questioned one of our Promoters, Mr. Vir Sen Sindhu and one of our employee, Mr. Naval Kishore and
conducted searches at the Registered Office and Corporate Office of the Company for the alleged involvement
in the payment of illegal gratification to the accused, Mr. M.P. Dixit of approximately ` 5 million. Mr Vir Sen
Sindhu and Mr. Naval Kishore, vide separate orders dated October 20, 2010 were granted protection by the
Special Judge, CBI, New Delhi wherein the learned judge stayed the arrest of Mr. Vir Sen Sindhu and Mr.
Naval Kishore till January 25, 2011. Thereafter, vide order dated February 07, 2011 the court of Special Judge,
CBI has further stayed the arrest of Mr. Vir Sen Sindhu and Mr. Naval Kishore till April 15, 2011 which has
further been extended to August 18, 2011.
Statutory
1. Suo moto Petition No. 21/2009 (M) before the Chhattisgarh State Electricity Regulatory Commission
Raipur (“Commission”) against Chhattisgarh State Power Distribution Company Limited, Chhattisgarh
State Power Transmission Company Limited, our Company and others
On April 15, 2009, the Commission issued a show cause notice under section 142 of Electricity Act, 2003 to
Chhattisgarh State Power Distribution Company Limited, Chhattisgarh State Power Transmission Company
Limited and certain companies including our Company with respect to non-compliance of the connectivity
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