The Petroleum and Natural Gas Regulatory Board (PNGRB) has said that Adani Gas is yet to respond to its notice for not disclosing crucial information.
The company had bid for gas projects using net worth calculation of Adani Enterprises.
The PNGRB notice was sent for not disclosing scheme of arrangement with Adani Enterprises, sources told CNBC Awaaz.
The show cause notices accessed by CNBC Awaaz revealed that Adani Gas bid for Gas projects using networth calculations of Adani Enterprises without disclosing the scheme of arrangement between the two companies. Adani Gas was later demerged as a part of the restructuring between Adani Enterprises, its holding company. However PNGRB believes that this was in violation of law as Adani Gas’ shareholding changes & restructuring were in violation of CGD regulations. The show cause notices also seeks to cancel licenses of Adani Gas along with levying a penalty of about rupees 400 crores.
Commenting on the story Adani Gas Spokesperson said “We are fully compliant and have transparently represented facts in totality adhering to norms of compliance and disclosure. All concerned authorities were intimated about the proceedings pertaining reorganization of Adani Gas. We have duly responded to PNGRB with all required informations to close the matter.”
One of the sources also added that the regulatory body, PNGRB is yet to grant Adani Gas an approval for selling 37.4 percent co to Total SA since the regulations do not allow shareholding of the current promoters to dip below the 51 percent threshold.
Adani Gas’ shareholding changes and restructuring violate city gas norms. PNGRB may seek to cancel Adani Gas licences and also levy Rs 400 crore penalty, the sources said.
Besides, PNGRB is also yet to approve Adani Gas’ 37.4 percent stake sale to French energy giant Total SA.
The share price tumbled 11 percent in the early trade on January 24 after the news broke. At 09:22 hrs, it was quoting at Rs 160.90, down Rs 11.95, or 6.91 percent.
News Source:- Moneycontrol