New Delhi: The shares of Tata Group company Voltas Limited declined by more than 4 percent on Thursday. The company’s share came to a low of Rs 1345 in Intrade. There is a news behind this decline in shares. Actually, the company has suffered a setback in the legal battle in Qatar. Subsequently, on Thursday, the shares of Tata Group company Voltas Limited declined. Significantly, so far this year, the company’s stock has fallen by about 27 percent during 28 business days.
What’s the matter?
In a case associated with a joint venture between OHL International, Spain and Contrac (Cyprus) Limited, the company has been ordered to pay the QAR 167.720 million (about Rs 402 crore). The legal dispute was on a sub-affection deal between Voltas and the OHL & C Consortium, under which Voltas filed a case against the joint venture (OHLC JV) in the investment in Doha, Qatar on August 14, 2023. The company had demanded a recovery of QAR 771.632 million (₹ 1,754.69 crore) for incomplete work, project changes and delays. In response, OHLC JV filed a direction of ₹ 7,384.83 crore, including a loss of ₹ 6,409 crore. Voltas opposed these claims and argued that he had fulfilled all the constituent obligations. Voltas issued two bank guarantees worth 166.720 million QAR (Rs 373 crore), which OHLC JV wanted to capitalize on. However, the concerned bank stopped the payment, forcing the OHLC JV to initiate legal action against the bank.
What did the company say
According to Voltas’s latest exchange filing, the Qatar court has now ruled in favor of OHLC JV, with the bank to issue guarantee and give additional compensation of QR 1 million. The court also rejected Voltas’ claim that the company was paid more after the repair cost. Voltas said that she is discussing with legal advisors and planning to appeal in the court against the decision.
