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15 April 2004 - Seeking to distance itself from the controversy over not bidding for Enron's equity in Dabhol Power Company in US Bankruptcy court, Maharashtra State Electricity Board (MSEB) on Tuesday said the agreement reached by GE, Bechtel, Overseas Private Investment Corporation (OPIC) and Enron last week was a comprehensive settlement of all claims and litigation among themselves.
"The agreement reached between GE, Bechtel, OPIC and Enron is a comprehensive settlement which includes mutual releases of claims, share purchases and assignment and it is unlikely for MSEB to have made such an offer," said acting MSEB chairman Jayant Kawale.
Had MSEB made the offer it would not have brought an end to other claims and litigations the concerned parties were involved internally, he said, adding the Board had acted on the advice of three lawyers who did not favour bidding for Enron's stake as it would have impacted other court cases.
Under the agreement reached by the four US entities, Enron has been assured 18 per cent of the claims which DPC can make against Indian Government with a ceiling of $342m, he said, adding it would not have been possible for MSEB to make such an offer.
He said the US bankruptcy court took into account the overall comprehensive settlement arrived by the parties and it was not as if court was auctioning Enron shares, adding the court took into account overall interests of bankrupt Enron.
He said Reliance, whose higher bid was rejected by the US court, had not approached the state government for backing its proposal.
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