Govt to scrap CEL sale; BEL stake sale likely in third quarter

New Delhi: Amid a pending case of alleged money laundering against Nandal Finance and Leasing filed by the Registrar of Companies, the Centre has decided to scrap the sale of Central Electronics Ltd (CEL) to Nandal Finance & Leasing.

"These allegations and the pending litigation is preventing the sale of CEL to Nandal Finance as the selected bidder had failed to disclose its ongoing litigation in the NCLT. The decision to halt the sale of CEL to Nandal Finance is taken by the core group of secretaries on divestment, headed by the cabinet secretary," an official said.

Besides, the government has also decided to take a call on strategic sale of Pawan Hans after clarity emerges on the pending case against Almas Global Opportunity Fund SPC, the lead member of the winning bidder consortium, in September, the official added.

The official also said the government could invite financial bids for the privatisation of BEML in the December quarter. Earlier this month, the corporate affairs ministry approved the demerger of land and non-core assets of BEML to BEML Land Assets Ltd.

"Every shareholder of BEML will get shares in BEML Land Assets and the process of demerger would be completed by the end of September or early October. Once the demerger process gets over by September-end or by early October, the financial bids for strategic sale of BEML would be invited," the official said.

As far as CEL's strategic sale is concerned, a case is pending against Nandal Finance at the National Company Law Appellate Tribunal (NCLAT), which involves allegations of money laundering filed by the Serious Fraud Investigation Office. The RoC has filed a winding-up petition against the firm. The next hearing of the case at NCLAT is listed for September 23.

In November last year, the government had approved the sale of CEL—a PSE under the DSIR —to Delhi-based Nandal Finan-ce & Leasing for Rs 210 crore. But in January this year, the Centre put the sale process on hold pending examination of allegations against the bidder.

In the case of Pawan Hans, the government has also decided to wait for the order of the NCLAT before finalising the sale of the helicopter service provider to Star9 Mobility Pvt Ltd, a consortium of Big Charter Private Ltd, Maharaja Aviation Private Ltd and Almas Global Opportunity Fund SPC.

Pawan Hans is a 51:49 venture of the government and ONGC. Almas Global Opportunity Fund, the lead member in the Star9 Mobility Pvt Ltd consortium, had earlier this year got an adverse ruling from the NCLT after it failed to make payments to creditors of Kolkata-based EMC Ltd under an approved resolution plan.