Talos Capital, TCI Investments, TCI Cyprus Holding Fraud and Litigation Lawsuit, Internet

http://timesofindia.indiatimes.com/business/india-business/CIL-Coal-Min-to-meet-TCI-over-legal-action-on-various-counts/articleshow/13599956.cms

NEW DELHI: With UK-based The Children's Investment Fund (TCI) threatening legal action against CIL on various counts, the Coal Ministry is likely to meet the hedge fund this week.


In March, TCI, a minority shareholder in Coal India (CIL), had served a
notice to the Indian government for alleged violations of international
treaties related to its investments in the state-owned firm.

According to a top official in the ministry, TCI will meet Coal secretary Alok Perti on May 29 wherein the UK-based hedge fund would be asked, "how is treaty being violated?"


TCI had said in a letter to the Finance Ministry, "The Republic of
India's recent conduct with respect to CIL has seriously impaired the
business activities and operations of CIL and has contravened each of
the treaties."

The
development followed CIL's getting ready to ink fuel supply pacts with
power firms for a minimum assured supply under a Presidential directive.


TCI is the biggest
foreign investor in Coal India and has a minority stake in it. It has
been accusing the PSU of not protecting minority shareholders' interest
and harming the company by not opposing such fuel supply pacts.The
Minister of State for Coal Pratik Prakashbapu Patil earlier this month
had said in a reply to the Lok Sabha that TCI had indicated that it
would take legal action against CIL board for breach of fiduciary
duties.

The
allegations by the hedge fund against CIL include under-pricing of coal
in the fuel supply agreement, compared to market level and slow
implementation of setting up of washeries among others.


"The allegations levelled against CIL are relating to operational
matters of CIL and CIL needs to address them as per the framework set up
by the company to handle investor grievances," the minister had said.

TCI's investments in CIL are through TCI Cyprus Holding Ltd and Talos Capital Ltd, which is registered in Ireland.


The hedge fund had also requested for formal negotiations with Indian
government on the issue for amicable settlement of the claims under the
respective treaties.


"Failing such settlements within six months, we reserve our rights to
initiate arbitration" in accordance with Cyprus and UK treaties, TCI had
said.