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Raffles Education wins case against India's Educomp
RAFFLES Education Corporation Limited (REC) has been handed a 163.2 million (S$3.52 million) rupee victory by an arbitration tribunal in India for breaches by Indian education services company Educomp of a prior share purchase agreement.
As such, REC will not be completing the sale and purchase, it said in a filing on Monday morning.
It said in a filing to the Singapore Exchange on Monday that the tribunal had found that Educomp has breached the agreement by failing to complete the sale and purchase transaction by REC's subsidiaries for a 41.82 per cent equity interest of Educom-Raffles Higher Education Limited (ERHEL) from Educomp Asia Pacific Pte Ltd and Educomp Professional Education Limited.
The Raffles subsidiaries, namely Raffles Education Investment (India) Pte Ltd and Raffles Design Pvt Ltd, currently hold the remaining 58.12 per cent equity interest of ERHEL.
The suit was launched in September 2015, and was delivered its final award on March 31, 2017.
In the award, the Raffles subsidiaries are to be awarded damages amounting to 163.2 million rupees for Educomp's breaches of the agreement, and interest at 5.33 per cent thereon from Aug 19, 2015, until payment.
The Raffles subsidiaries are to be paid a significant portion of their legal costs and expenses in the arbitration, amounting to S$750,000 and US$550,000.
"Pursuant to the award, the Raffles subsidiaries will not be completing the sale and purchase and will be taking steps to proactively enforce the terms of the award in the relevant jurisdictions including in Singapore and in India," wrote REC.