In an internal audit and state vigilance inquiry, the Bengal Government has found that Hindustan Motors has understated the sale of 314 acres of excess land by Rs 200 crore in 2007. According to its findings, the C K Birla Group’s automobile company’s Uttarpara plant had a total of 741 acres and its factory manufacturing the Ambassador car was built on 427 acres. In 2003, the beleaguered company approached state government, with whom the land was vested, to sale the excess land and raise funds. The said proposal was approved in 2006 and the automobile company sold 314 acres to Bangalore based Shriram Properties for Rs 85 crore in 2007. However, government claims the deal was sealed for Rs 285 crore and understating amount has resulted loss to ex-chequer.
The government is now waiting for company’s response else it may move to court demanding Rs 200 crore compensation. The news has sent jitters to the stock prices of Hindustan Motors which is trading in the negative zone.
Hindustan Motors is currently trading at Rs. 9.37, down by 0.26 points or 2.70% from its previous closing of Rs. 9.63 on the BSE.
The scrip opened at Rs. 9.50 and has touched a high and low of Rs. 10.44 and Rs. 9.31 respectively. So far 31180 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 5 has touched a 52 week high of Rs. 20.45 on 27-Apr-2011 and a 52 week low of Rs. 7.58 on 21-Dec-2011.
Last one week high and low of the scrip stood at Rs. 10.38 and Rs. 9.20 respectively. The current market cap of the company is Rs. 162.07 crore.
The promoters holding in the company stood at 32.19% while Institutions and Non-Institutions held 5.73% and 62.08% respectively.
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