SC stays order on Sardar Sarovar bonds

The Supreme Court has granted interim relief to Sardar Sarovar Narmada Nigam (SSNNL) and its parent entity, the Gujarat government, staying a Gujarat high court order in the deep discount bonds case.

The move might mean the wait for hundreds of investors --including several provident funds, wealthy and small investors --could continue for months.

In 2008, the Gujarat government had got enacted the Sardar Sarovar Narmada Nigam Ltd (Conferment of Power to Redeem Bonds) Act. This enabled SSNNL to redeem bonds five years ahead of schedule for Rs 50,000, less than half the maturity value of Rs 111,000.

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Act allowing premature redemption of SSNL bonds illegal: HC

Good News for All SSNL Deep Discount Bond Holders

In a setback to the Gujarat government, the high court today ruled that an act passed by the state assembly in 2008 to empower Sardar Sarovar Narmada Nigam Ltd (SSNNL) to redeem its bonds before maturity was illegal. A bench of acting Chief Justice Jayant Patel and Justice N V Anjaria termed the SSNNL (Conferment of Power to Redeem Bonds) Act, passed in March 2008, as "ultra-vires" and "void". However, the court also said that its order would come into effect after two months. The court further directed the petitioners as well as investors, who have already redeemed their bonds, to approach the civil court to collect the amount of loss they have incurred due to the Act. 

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