Con­flict of In­ter­est

The Economic Times - - Companies -

Ace in­vest­ment banker Ra­jeev Gupta, apart from stitch­ing to­gether big deals such as the $13 bil­lion sale of Es­sar Oil to Rus­sia’s Ros­neft, is also a keen en­vi­ron­men­tal­ist. In the past, he has ful­filled his mother’s wishes by plant­ing fruit-bear­ing trees on three acres in Kash­mir as a bird habi­tat. In Mum­bai, after he cre­ated a green cover near his home, he has ap­proached the mu­nic­i­pal body to plant around 2,000 trees in and around the area, be­sides tak­ing on the re­spon­si­bil­ity of car­ing for them. Hope he gets a ‘green’ sig­nal in a city that’s ever-in­creas­ingly cov­ered in con­crete, steel and glass. A large steel­maker re­cently made an of­fer to buy a smaller ri­val owned by the buyer’s close rel­a­tives. The two fam­i­lies agreed to a deal in prin­ci­ple and then ap­proached the lenders, who call the shots be­cause of the com­pany’s heavy debt. The deal did not pass muster with the lenders, though, who ob­jected on the grounds of a con­flict of in­ter­est. They said any hair­cut of debt by lenders will be scru­ti­nised by in­ves­ti­gat­ing agen­cies since the deal is be­tween re­lated par­ties. Now the com­pany has been re­ferred to the Na­tional Com­pany Tri­bunal.

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