Assigns non-compete fee receivable from BSL in favour of GoWB
Hindustan Motors announced that the Company has received a Memorandum dated 29 September 2014 on 20 October 2014 from Government of West Bengal (GoWB) which inter alia confirmed the assignment of the entire 4% non-compete fee receivable by the Company from Bengal Shriram Hitech City (hereinafter referred to as BSL") on account of transfer of 314 acres of land to BSL in the year 2006-07 in favour of GoWB. This non-compete fee was receivable from BSL in addition to the consideration received from them at the time of transfer of the said land. This assignment of 4% non-compete fee in favour of GoWB has been done with the following understanding:1. This assignment of right to receive 4% non-compete fees from BSL is made towards full & final settlement of GoWB dues of Rs. 194.47 crores with interest thereon arising out of second proviso of Sub-Section (1) of Section 14Z of the Land Reforms Act, 1955 for granting the permission vide GoWB Order dated September 13, 2006
AND
2. The aforesaid non-compete fee of 4% will be directly paid to GoWB by BSL in the manner to be decided by GoWB.
With this assignment of 4% non-compete fee in favour of GoWB, contingent liability appearing in the books of the Company on account of point no. (1) above stands settled.
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