Preliminary Information Memorandum

Hotel Corporation of India

 

 

 

DISCLAIMER

1. This document is being provided in connection with the proposed disinvestment of the Businesses of Hotel Corporation of India (“HCI”) by the Air India Limited (“AI”) / Government of India (“GoI”)

Centaur Hotel IGI Airport and Chefair Delhi Flight Kitchen (“Centaur Delhi”)	A 376 room, luxury hotel and a contiguous 8,000 meals per day flight kitchen facility located close to the international airport terminal in New Delhi
Chefair Mumbai Flight Kitchen (“Chefair Mumbai”)	A flight kitchen business with a capacity of 10,000 meals per day located close to the international airport in Mumbai

2. JPMorgan India Private Limited (“JPMorgan”), formerly Jardine Fleming India Securities Limited, have been appointed Advisors for the disinvestment of HCI by AI.

3. The sole purpose of this document is to assist the recipient in deciding whether they wish to proceed with a further investigation of the proposed disposal, but it is not intended to form the basis of any investment decision or any decision to proceed with the transaction. This document does not constitute nor should it be interpreted as an offer or invitation for the sale or purchase of securities described herein.

4. This document is meant to provide information only and upon the express understanding that recipients will use it only for the purposes set out above. It does not purport to be all inclusive or contain all the information about HCI or be the basis of any contract. No representation or warranty, expressed or implied, is or will be made as to the reliability, accuracy or the completeness of any of the information contained herein. It shall not be assumed that there shall be no deviation or change in any of the herein mentioned information on HCI. While this document has been prepared in good faith, neither HCI nor AI/GoI nor JPMorgan nor any of their respective officers or employees make any representation or warranty or shall have any responsibility or liability whatsoever in respect of any statements or omissions herefrom. Any liability is accordingly expressly disclaimed by HCI, AI/GoI, JPMorgan and any of their respective officers or employees even if any loss or damage is caused by any act or omission on the part of HCI, AI/GoI, JPMorgan or any of their respective officers or employees, whether negligent or otherwise.

5. By acceptance of this document, the recipient agrees that any information herewith will be superseded by any later written information on the same subject made available to the recipient by or on behalf of HCI, AI/GoI, JPMorgan. HCI, AI/GoI and JPMorgan and any of their respective officers or employees undertake no obligation, among others, to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies therein which may become apparent, and they reserve the right, at any time and without advance notice, to change the procedure for the sale of all or any part of the Interest or terminate negotiations or the due diligence process prior to the signing of any binding purchase agreement.

6. Accordingly, interested recipients should carry out an independent assessment and analysis of Businesses of HCI and of the information, facts and observations contained herein.

7. This document has not been filed, registered or approved in any jurisdiction. Recipients of this document resident in jurisdictions outside India should inform themselves of and observe any applicable legal requirements.

 

SUBMISSION OF EXPRESSION OF INTEREST (EOI)

1. INTRODUCTION

Air India Limited which is wholly owned by Government of India, wishes to sell selected businesses of its wholly owned subsidiary, Hotel Corporation of India Limited. JPMorgan India Private Limited, formerly Jardine Fleming India Securities Limited, has been retained as Global Advisor (“GA”) by AI/GoI in connection with the proposed sale.  A summary of HCI’s businesses (“Businesses”) which are proposed to be sold are outlined below:

 

1) Centaur Hotel IGI Airport and Chefair Delhi Flight Kitchen (“Centaur Delhi”):  Centaur Delhi is a 376 room luxury hotel constructed in 1982 and located close to New Delhi’s domestic and international airports and adjacent to National Highway (“NH-8”) connecting Delhi to Jaipur.  Also located in the same complex is an 8000 meals per day flight kitchen that became operational in 1983.  The hotel and flight kitchen complex is located on 45,000 sqm of land leased from Airports Authority of India (“AAI”) and has a combined built up area of 38,927 sqm.

 

The key highlights of the Centaur Hotel IGI Airport and Chefair Delhi Complex are:

 

Ÿ         Proximity to New Delhi’s domestic and international airports

Ÿ         Conveniently accessible for commercial hubs of Connaught Place, Bhikaji Cama Place and Nehru Place

Ÿ         Conveniently accessible for Gurgaon, a new and upcoming commercial center

Ÿ         Strong potential for growing banqueting and food and beverage revenues

Ÿ         Lease period of 30 years and turnover levy of 2%

 

2) Chefair Mumbai Flight Kitchen (“Chefair Mumbai”): Chefair Mumbai is Mumbai’s second largest air catering business with a capacity of 10,000 meals per day.  The facility is strategically located adjacent to the Mumbai’s international airport and 4 kms from the domestic airport on land measuring 14,000 sqm. leased from AAI.

 

The key highlights of Chefair Mumbai are:

 

·         Critical mass in Mumbai’s flight catering business

·         Excellent location close to both the domestic and international airports

Ÿ         Lease period of 29 years and turnover levy of 2%

2. ADVERTISEMENT INVITING EOI

2.1 An advertisement has been issued in the newspapers inviting interested parties to submit their 'Expression of Interest' (“EOI”) to participate in the disinvestment process, a copy of which is enclosed as Annexure-I.

 3. ELIGIBILITY/ PRE-QUALIFICATION CRITERIA:

3.1 Individual party(ies)/consortium interested in acquiring one or more of the HCI’s individual Businesses on a going concern basis (“Interested Party(ies)”) should have a combined net worth as per last annual audited accounts of at least Rs. 250 million and Rs. 20 million for Centaur Delhi and Chefair Mumbai respectively.

3.2 In choosing between prospective strategic partner(s), AI/GoI will pay due attention, inter-alia to the security requirements of the country.

3.3 Where the financial statement is expressed in currency other than Indian Rupee, the eligible amount as described above shall be computed by taking the equivalent US Dollars at the exchange rates (stipulated by Foreign Exchange Dealers Association of India) prevailing on the date(s) of such financial statement.

3.4 The Preliminary Information Memorandum (“PIM”) along with its enclosures does not constitute a commitment on the part of AI/GoI or HCI or JPMorgan, whether in respect of the disinvestment process or otherwise. Furthermore, this invitation confers neither any right nor expectation to any party to participate in the said process.

3.5 AI/GoI and HCI reserve the right to withdraw from the process or any part thereof, to accept or reject any or all offers at any stage of the process and/or modify the process or any part thereof or to vary any terms at any time without assigning any reason whatsoever. No financial obligation whatsoever shall accrue to AI/GoI or HCI in such an event.

4. INITIAL PROCESS

4.1 Following receipt of this PIM, Interested Parties will be required to submit a package comprising an Expression of Interest, a Statement of Legal Capacity and a Request for Qualification (“RFQ”) in the format specified in Annexure II, III, and IV together referred to as “the EOI Package”.

4.2 Based on an evaluation of the EoI Package received, Interested Parties which are deemed to be qualified by  AI/GoI ("Qualified Interested Parties" or "QIPs") will be allowed to participate in the subsequent selection process (without conferring any right or expectation whatsoever to the QIPs).

4.3 Following signing of a Confidentiality Agreement ("CA") by duly authorized personnel, QIPs will be provided with the Confidential Information Memorandum ("CIM") and invited to participate further in the process as detailed in the CIM.

5. FILING REQUIREMENTS

5.1 Interested parties must submit, in duplicate, their EoI Package, as per the formats given in Annexure II, III & IV of this PIM.

5.2 EoIs must be signed by a duly authorized representative of the interested party. In the case of a consortium or joint venture the EoI must be signed by a duly authorized representative for the group. In addition, Statements of Legal Capacity and RFQs have to be submitted by interested parties and each member of any consortium or joint venture. This comprises the EoI Package.

5.3 All EoI Packages must be in English and each copy shall be bound in a separate volume. Submission of the aforesaid documents by fax, e-mail or other electronic means will not be acceptable. It is the responsibility of the Interested Party(ies) alone to ensure that its EoI with required documents is delivered at the address given below by the stated time and date. The covering envelope containing the aforesaid document should be clearly marked "Expression of Interest for participation in disinvestment in HCI Ltd". Neither AI/GoI nor HCI nor JPMorgan shall be responsible for non-receipt of correspondence.

5.4 The EoI package must be submitted by no later than 17.00 hours (Indian Standard Time), April 30, 2002 at the following address:

Mr. Arun Das Vice President, Investment Banking JPMorgan India Private Limited Mafatlal Centre, 9th Floor, Nariman Point, Mumbai – 400 021 Tel : 91 22 239 2909 Fax: 91 22 239 3091 Email :arun.v.das @jpmorgan.com

6. EOI FILED BY CONSORTIA/JOINT VENTURES

6.1 If a Consortium or Joint Venture is formed, or proposed to be formed, specifically for the purpose of this investment, details of the members of the Consortium or Joint Venture and the extent of their interest herein must be provided in the EoI Package.

6.2 Any subsequent change by way of withdrawal/substitution of any member of the consortium or joint venture or any change affecting the composition of the consortium or joint venture may be permitted, but only with the specific approval of AI/GoI. AI/GoI has the sole discretion to determine the impact of the change in membership on the structure and quality of the Consortium or joint venture and reject a proposal without assigning any reason whatsoever.

The RFQ should be duly filled in and accompanied by the following details:

In case of a sole bidder

    » The Audited Balance Sheet and Profit & Loss Account of the sole bidder (Indian company/Foreign company) for the last 3 financial years.

    » Write-up on:

• Profile of the sole bidder
• A statement of reasons for strategic interest in Businesses of HCI
• Any other information considered material

 

In case of a consortium bid

   » The Audited Balance Sheet and Profit & Loss Account for the last 3 financial years of the lead bidder and other member companies associated in the bid.

   » Write-up on:

   » Lead bidder

• Profile of the lead bidder
• A statement of reasons for strategic interest in Businesses of HCI
• Any other information considered material by the lead bidder

   » Other member companies

• Profile of member companies in the consortium
• Any other information considered material

7. DISQUALIFICATION

7.1 AI/GoI shall not consider for the purpose of qualification, an EoI which is found to be incomplete in content and/or attachments and/or authentication etc.

7.2 Without prejudice to any other rights or remedies available to AI/GoI, a company/consortium/joint venture may be disqualified and its EoI dropped from further consideration for any reason whatsoever including those listed below:

·         Material misrepresentation by such company/any member of such consortium/joint venture whether, in the EoI along with the RFQ or otherwise

·         Failure by such company/consortium/joint venture to provide the information required to be provided in the EoI, along with the RFQ, pursuant to relevant sections of the PIM

·         Submission of an EoI along with RFQ in respect of any company/consortium/joint venture, where such company or any member of such consortium/ joint venture which has already submitted an EoI

7.3 If information becomes known, after the interested party has been qualified to receive the Confidential

Information Memorandum (“CIM”), which would have entitled AI/GoI to reject or disqualify the relevant company/ consortium/ joint venture, AI/GoI reserves the right to reject the interested party at the time, or at any time after, such information becomes known to AI/GoI.

7.4 Where the interested party is a consortium/ joint venture, AI/GoI may disqualify the entire consortium/ joint venture for any of the reasons set out above, even if it applied to only one member of the consortium/ joint venture.

7.5 Further, Government of India issued guidelines for disqualification of bidders seeking to acquire any public sector enterprises through the process of disinvestment vide Department of Disinvestment OM No.6/4/2001-DD-II dated 13th July, 2001 a copy of which is enclosed as Annexure-V. The interested party(ies) are required to read the guidelines and satisfy themselves that they are qualified to bid for the stake in HCI through the process of disinvestment and give an undertaking to the effect that they are qualified to bid for the stake in HCI in the Expression of Interest to be submitted by them. Further, interested parties would be required to provide the information on the criteria, laid down in the guidelines of 13.07.2001 along with their EOI. The bidders shall be required to provide with their EOI an undertaking to the effect that no investigation by a regulatory authority is pending against them. In case any investigation is pending against the concern or its sister concern or against its CEO or any of its Directors/Managers/employees, full details of such investigation including the name of the investigating agency, the charge/offence for which the investigation has been launched, name and designation of persons against whom the investigation has been launched and other relevant information should be disclosed, to the satisfaction of the Government. For other criteria also, a similar undertaking shall be provided along with EOI.

7.6 The companies/consortia not satisfying the eligibility and requisite qualification criteria specified in the above sections are not eligible.

8. FUTURE PROCESS

8.1 Based on the EoI submitted by the interested parties, AI/GoI, advised by JPMorgan, will carry out an evaluation of the qualification of such interested parties. If at any time during the evaluation process, AI/GoI or JPMorgan requires any clarification in order to carry out the evaluation, it reserves the right to request such information from any or all of the companies/ consortium/ joint ventures and the companies/ consortium/ joint venture will be obliged to respond to any reasonable request for such information and to supply the same to JPMorgan within such reasonable timeframe as AI/GoI or JPMorgan may require.

8.2 Based on an evaluation of EOIs received, interested parties, which are deemed fit ("qualified interested parties" "QIP"), will be qualified to participate in the subsequent selection process (without conferring any right or expectation whatsoever to QIP). QIP will be provided with the CIM and shall be invited to participate further in the process described in detail in the CIM. QIP will get an opportunity to conduct due diligence and take up site visits and will also have access to data room and hold discussions with the management of HCI/officials of Ministry of Civil Aviation/Ministry of Disinvestment, Government of India. The rules regarding access to information in the data rooms will be provided to QIPs later. QIPs will be invited to submit their proposal and a binding price bid.

8.3 This document constitutes no form of commitment on the part of AI/GoI or HCI other than to provide further information on Businesses of HCI. Furthermore, this document confers neither the right nor an expectation on any party to participate in the proposed divestment process. AI/GoI and HCI reserve the right to withdraw from the process or any part thereof or vary any terms at any time without assigning any reasons. AI/GoI reserves the right to accept or reject any/all offer(s) without assigning any reasons.

9. ENQUIRIES

9.1 AI/GoI and JPMorgan reserve the right not to respond to question raised or provide clarifications sought, in their sole discretion, if it is considered that it would be inappropriate to do so. Nothing in this section shall be taken or read as compelling or requiring AI/GoI and GA to respond to any question or to provide any clarification. No extension of any time and date referred to in this IM shall be granted on the basis or grounds that AI/GoI and the GA has not responded to any question/ provided any clarification.

  10. GOVERNING LAWS/ JURISDICTION ARBITRATION

10.1 All matters relating to the disinvestment process and the bidding procedure shall be governed by the law of Union of India. Only Courts at New Delhi (with exclusion of all other Courts) shall have the jurisdiction to decide or adjudicate on any matter which may arise.

 

 

 

 

 

 

(ANNEXURE 1)

 

SALE OF BUSINESSES OF HOTEL CORPORATION OF INDIA LIMITED,

A WHOLLY OWNED SUBSIDIARY OF AIR INDIA LIMITED

 

This announcement is neither a prospectus nor an offer or invitation for sale to the public of shares, securities or debentures

 

Air India Limited (“AI”), which is wholly owned by Government of India (“GoI”) wishes to sell selected businesses of its wholly owned subsidiary, Hotel Corporation of India Limited (“HCI”). JPMorgan India Private Limited, formerly Jardine Fleming India Securities Limited, (“JPMorgan”) has been retained as Global Advisor (“GA”) to AI in connection with the proposed sale.  A summary of HCI’s businesses (“Businesses”) which are proposed to be sold are outlined below:

 

Centaur Hotel IGI Airport and Chefair Delhi Flight Kitchen (“Centaur Delhi”)	A 376 room, luxury hotel and a contiguous 8,000 meals per day flight kitchen facility located close to the international airport terminal in New Delhi
Chefair Mumbai Flight Kitchen (“Chefair Mumbai”)	A flight kitchen business with a capacity of 10,000 meals per day located close to the international airport in Mumbai

 

Individual party(ies)/consortium interested in acquiring one or more of the HCI’s individual Businesses on a going concern basis (“Interested Party(ies)”) should have a combined net worth as per last annual audited accounts of atleast Rs. 250 million and Rs. 20 million for Centaur Delhi and Chefair Mumbai respectively.

 

Interested Party(ies) are invited to submit to the under mentioned person their Expression of Interest (“EOI”) by no later than 5:00 p.m. on April 30, 2002.

 

Mr. Arun Das Vice President, Investment Banking JPMorgan India Private Limited Mafatlal Centre, 9th Floor, Nariman Point, Mumbai – 400 021 Tel : 91 22 239 2909 Fax: 91 22 239 3091 Email :arun.v.das @jpmorgan.com

 

The Preliminary Information Memorandum (“PIM”) containing further information about businesses, qualification requirements, formats for EOI and request for qualification can be obtained from the above-mentioned person or accessed/downloaded  at the following websites -

 

 a)     www.divest.nic.in         b)  www.airindia.com

 

Interested Parties which are deemed fit by AI / GoI and JPMorgan in one or more of HCI’s individual businesses on a going concern basis  (“Qualified Interested Party(ies)”) will subsequently be provided with further materials to enable them to assess the opportunity.

 

This advertisement constitutes no form of commitment on the part of AI/GoI or JPMorgan other than to provide further information on HCI to Qualified Interested Parties which request for the same. Furthermore, this advertisement confers neither the right nor an expectation on any party to participate in the sale process. AI/GoI and JPMorgan reserve the right to withdraw from the process or any part thereof or to vary any of its terms at any time without giving any reason whatsoever. No financial obligation, whatsoever shall accrue to AI / GoI or JPMorgan in such an event. Neither AI/GoI or JPMorgan shall be responsible for non-receipt of correspondence sent by post/courier/email/fax.

ANNEXURE-II

{EXPRESSION OF INTEREST ('EOI')}

(To be forwarded on the letterhead of the interested parties/members of the consortium/joint venture submitting the EoI).

Ref   : _________
Date : _________

Sub: EXPRESSION OF INTEREST FOR STRATEGIC PARTNER IN HCI

Sir,

We refer to the advertisement dated____________ inviting Expression of Interest for businesses of Hotel Corporation of India Ltd.

We have read and understood the contents of PIM and the advertisement and wish to participate in the above disinvestment process.

* We propose to submit our EoI in an individual capacity for and on behalf of (insert company name) for the following businesses of HCI

Centaur Hotel IGI Airport and Chefair Delhi Flight Kitchen (“Centaur Delhi”)	Yes/No
Chefair Mumbai Flight Kitchen (“Chefair Mumbai”)	Yes/ No

* We have formed / propose to form a consortium/joint venture comprising the following members:

1. __________________(Insert company name)
2. __________________(Insert company name)
3. __________________(Insert company name)

We confirm that we/our consortium/joint venture/proposed consortium / proposed joint venture* satisfy the eligibility criteria set out in the relevant sections of the PIM including the guidelines for qualification of bidders seeking to acquire stakes in Public Sector Enterprises through the process of disinvestment issued by the Government of India vide Department of Disinvestment OM No. 6/4/2001-DD-II dated 13th July, 2001. The Statement of Legal Capacity and Request for Qualification as per formats, indicated hereinafter duly signed by us/ respective members, who jointly satisfy the eligibility criteria, are enclosed.

We certify that in regard to matters other than security and integrity of the country, we have not been convicted by a Court of law or indicted or adverse orders passed by a regulatory authority which would cast a doubt on our ability to manage the public sector unit when it is disinvested or which relates to a grave offence that outrages the moral sense of the community.

We  further certify that in regard to matters relating to security and integrity of the country, we have not been convicted by a court of Law for any offence committed by us or by any of our sister concerns and no charge sheet has been filed by any agency of the Government for any offence committed by us or by any of our sister concerns.

 We further certify that no investigation by a regulatory authority is pending either against us or against our sister concerns or against our CEO or any of our Directors/Managers/employees.

The request of Qualification as per format duly signed by us/respective members, who jointly satisfy the eligibility criteria, is enclosed.

We shall be glad to receive further communication on this subject.

Yours faithfully,

Authorised Signatory
For and on behalf of

* strike off whichever is not applicable.

  ANNEXURE -III

STATEMENT OF LEGAL CAPACITY

(To be forwarded on the letterhead of the interested party and /or each member of the consortium/ joint venture submitting the EoI).

Ref:
Date :

Mr. Arun Das

Vice President, Investment Banking

JPMorgan India Private Limited

Mafatlal Centre, 9th Floor,

Nariman Point, Mumbai – 400 021

Tel : 91 22 239 2909

Fax: 91 22 239 3091

SUB: Expression of Interest (EoI) - Participating in the Disinvestment Process of HCI Limited - Statement of Legal Capacity

Sir,

We refer to the advertisement dated________of the Air India (AI) /Preliminary Information Memorandum (“PIM”) in connection with the proposed disinvestments of HCI.

We have read and understood the contents of the PIM and the advertisement and pursuant to this hereby confirm that:

we satisfy the eligibility criteria laid out in the PIM and the advertisement.*

we are a member of the consortium (constitution of which has been described in the Expression of Interest) which jointly satisfies the eligibility criteria as detailed in the PIM.*

We have agreed that (insert individual's name) will act as our representatives on our behalf and has been duly authorized to submit the EoI. Further, the authorized signatory is vested with requisite powers to furnish such letter and Request for Qualification and authenticate the same.*

We have agreed that (insert the name of the individual) chosen as representative of our consortium and on our behalf and has been duly authorized to submit the EoI. Further, the authorized signatory is vested with requisite powers to furnish such letter and Request for Qualification and authenticate the same.*

Yours faithfully,

 

Authorised Signatory
For and on behalf of

* strike off whichever is not applicable.

 

 

ANNEXURE-IV

REQUEST FOR QUALIFICATION ("RFQ")

(To be submitted in the respect of the interested parties/ each member of the consortium/ joint venture).

Name of the interested Party (ies)/Member (s) : ____________________

Constitution (Tick, wherever applicable): Sector (Tick, wherever applicable) :

- Public Limited Company - Public Sector
- Private Limited Company - Joint Sector
- Co-op. Society - Private Sector
- Partnership - Co-op. Sector
- Proprietary Concern/ Individual - Others

- Particulars of Ownership :

- Nature of business/ Products dealt with :

- Date of incorporation :

- Date of commencement of business :

- Full address including telephone Nos./Fax Nos. :

- Registered Office :

- Address for communication :

Basis of eligibility for participating in the proposed disinvestment in the HCI: (Please mention details of your eligibility as per the PIM requirements)

(Please attach supporting documents including the latest Certified Provisional/ Audited/ Unaudited Statement of Accounts and Annual Reports for the last 3 years).

Contact Persons :

Yours faithfully,

 

Authorised Signatory
For and on behalf of

Place:
Date:

 

   

ANNEXURE-V

No. 6/4/2001-DD-II
Government of India
Department of Disinvestment

Block 14, CGO Complex
New Delhi.
Dated 13th July, 2001.

 

OFFICE MEMORANDUM

 

Subject: Guidelines for qualification of Bidders seeking to acquire stakes in
Public Sector Enterprises through the process of disinvestment

Government has examined the issue of framing comprehensive and transparent guidelines defining the criteria for bidders interested in PSE-disinvestment so that the parties selected through competitive bidding could inspire public confidence. Earlier, criteria like net worth, experience etc. used to be prescribed. Based on experience and in consultation with concerned departments, Government has decided to prescribe the following additional criteria for the qualification / disqualification of the parties seeking to acquire stakes in public sector enterprises through disinvestment:-

(a) In regard to matters other than the security and integrity of the country, any conviction by a Court of Law or indictment / adverse order by a regulatory authority that casts a doubt on the ability of the bidder to manage the public sector unit when it is disinvested, or which relates to a grave offence would constitute disqualification. Grave offence is defined to be of such a nature that it outrages the moral sense of the community. The decision in regard to the nature of the offence would be taken on case to case basis after considering the facts of the case and relevant legal principles, by the Government.

(b) In regard to matters relating to the security and integrity of the country, any charge-sheet by an agency of the Government / conviction by a Court of Law for an offence committed by the bidding party or by any sister concern of the bidding party would result in disqualification. The decision in regard to the relationship between the sister concerns would be taken, based on the relevant facts and after examining whether the two concerns are substantially controlled by the same person/persons.

(c) In both (a) and (b), disqualification shall continue for a period that Government deems appropriate.

(d) Any entity, which is disqualified from participating in the disinvestment process, would not be allowed to remain associated with it or get associated merely because it has preferred an appeal against the order based on which it has been disqualified. The mere pendency of appeal will have no effect on the disqualification.

(e) The disqualification criteria would come into effect immediately and would apply to all bidders for various disinvestment transactions, which have not been completed as yet.

(f) Before disqualifying a concern, a Show Cause Notice why it should not be disqualified would be issued to it and it would be given an opportunity to explain its position.

 

 

 

(g) Henceforth, these criteria will be prescribed in the advertisements seeking Expression of Interest (EOI) from the interested parties. The interested parties would be required to provide the information on the above criteria, along with their Expressions of Interest (EOI). The bidders shall be required to provide with their EOI an undertaking to the effect that no investigation by a regulatory authority is pending against them. In case any investigation is pending against the concern or its sister concern or against its CEO or any of its Directors/Managers/employees, full details of such investigation including the name of the investigating agency, the charge/offence for which the investigation has been launched, name and designation of persons against whom the investigation has been launched and other relevant information should be disclosed, to the satisfaction of the Government. For other criteria also, a similar undertaking shall be obtained along with EOI.

 

 

A.K. Tewari
(Under Secretary to the Government of India)

 

 

NOTE:

The following would be treated as grave offence-

(i) Only those orders of SEBI are to be treated as coming under the category of "grave offence" which directly related to "fraud" as define in the SEBI Act and / or regulations.

(ii) Only those orders of SEBI that cast a doubt on the ability of the bidder to manage the public sector unit when it is disinvested are to be treated as adverse.

(iii) Any conviction by a Court of Law

(iv) In cases in which SEBI also passes a prosecution order, disqualification of the bidder should arise only on conviction by the Court of Law.