Dalmia Bharat subsidiary, Dalmia Cement (Bharat) Limited, has encountered a significant legal challenge as the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA) confirmed a Provisional Attachment Order against the company. The order, received on September 23, validates the attachment of company land valued at approximately Rs. 377.26 crore.

Details of the Attachment Order

The confirmation stems from a Rs. 793.34 crore provisional attachment order initially issued by the Joint Director of the Enforcement Directorate (ED) in Hyderabad on March 31. This action is linked to allegations regarding investments in Bharathi Cement Corporation Private Limited, originating from a Central Bureau of Investigation (CBI) case registered in 2011.

Company's Response and Legal Strategy

Dalmia Cement (Bharat) Limited has stated that the order does not impact its daily operations. The company is currently examining the order and, based on legal advice, plans to pursue appropriate legal remedies to challenge the impugned order before the appropriate forum.

Background of the Case

The provisional attachment by the ED is rooted in a case registered by the CBI in 2011. The CBI had made certain allegations against Dalmia Cement (Bharat) Limited regarding investments in Bharathi Cement Corporation Private Limited. This matter is currently sub-judice before the CBI Court in Hyderabad.

Regulatory Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Dalmia Bharat disclosed this development to the stock exchanges. The company had previously informed about the receipt of the Provisional Attachment Order on April 16.

While the legal proceedings unfold, Dalmia Cement (Bharat) Limited maintains that its day-to-day operations remain unaffected. The company's next steps will involve seeking legal recourse to address this significant financial attachment.

Dalmia Bharat Limited (DBL) has successfully obtained approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to reclassify Birla Tyres Limited from the 'Promoter and Promoter Group' category to the 'Public' category. This significant development marks a shift in the shareholder structure of the company.

Timeline of Events

• Dalmia Bharat submitted the reclassification application to both BSE and NSE.
• Both stock exchanges approved the reclassification request.
  • BSE approval received at 04:15 pm
  • NSE approval received at 05:31 pm

Details of the Reclassification

The reclassification changes the status of Birla Tyres Limited from being part of the promoter group to a public shareholder of Dalmia Bharat Limited. This move is in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Official Communication

Rajeev Kumar, Company Secretary of Dalmia Bharat Limited, confirmed the reclassification in an official communication to the stock exchanges. The company had initiated the process with earlier communications leading up to the final approval.

Implications

This reclassification could potentially impact the ownership structure and voting rights within Dalmia Bharat Limited. It may also affect market perceptions of the company's governance and ownership concentration.

Investors and market analysts will likely monitor any subsequent changes in shareholding patterns or strategic decisions that may arise from this reclassification.

Dalmia Bharat Limited, a prominent player in the Indian cement industry, continues to adapt its corporate structure. Shareholders and potential investors are advised to keep track of any further announcements or changes that may follow this reclassification.