In the backdrop of a petition filed by Aditya Birla Real Estate Fund, the Madras High Court on Wednesday inhibited L&T Realty Limited from selling its stake in L&T South City Projects.
Aditya Birla Real Estate Fund is also a shareholder in the same project. L&T Realty Limited carried out a share purchase agreement to Pragnya Group, an investment firm; the agreement was for sale of its 51% stake in the South City Projects Private Limited.
The stake sale was approximated to be around Rs 190 crore.
The Madras High Court has passed an interim order, inhibiting L&T Realty from transferring of shares to Pragnya, and it has also been prohibited from holding a board meeting till the adjudication by the High Court.