UK fund sues Coal India for mismanagement
13 Oct 2012
The largest shareholder in Coal India Ltd after the central government, The Children's Investment Fund Management (TCI), has filed a suit against the directors of the state-run firm for mismanagement that TCI says cost it more than Rs2,00,000 crore.
The suit was filed by London-based TCI in the Kolkata High Court against the chairman and managing director of CIL, its executive directors, independent directors, subsidiaries and the Government of India.
TCI has alleged that the government abused its powers as dominant shareholder to improperly exert pressure on CIL directors to take decisions against the interests of other shareholders.
The case is scheduled to be heard on 12 December.
TCI holds about 1 per cent in CIL, the largest single coal producer in the world thanks to its virtual monopoly in India.
The childrens' welfare fund wants a reversal of the rollback in the price of coal that was put into effect by the government in February this year, as well as parity between domestic and international prices so that profits are maximised.
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