Terms Set For Defreezing Daewoo Finance Assets

The Delhi High Court yesterday imposed tough conditions on Daewoo Finance Ltd, one of the 40 companies tainted by the CRB Capital Markets scam, to defreeze its assets.

The Korean company had moved the court last week for defreezing its assets, pleading that it was inadvertently dragged into the controversy. According to it, CRB has only 24 per cent shares in it. Justice S N Kapoor passed a 30-page order in which one of the conditions is that the company should appoint retired deputy accountant-general A C Tiwari and retired controller-general Meera Saxena as directors.

Last week, Justice Kapoor had asked the finance ministry to nominate two persons to replace CRB group chairman C R Bhansali and his wife Manjula from the Daewoo Finance board.

 

The court took this step to protect the interests of the investors. The six others on the board of the company are Koreans.

The court further directed that the company shall not dispose of its immovable property.

It shall also obtain prior permission of the board for major expenditures. The management has power to spend only on routine heads.

Justice Kapoor said, Neither any payment excepting petty and routine expenditure shall be made by the objector (Daewoo) company nor any liability by raising loan from any person shall be incurred without the prior approval of the board of directors.