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Squeezed Out: Supreme Court Upholds Selective Capital Reduction Targeting Minority Shareholders under Section 66 of the Companies Act in Bharti Telecom Case

In Pannalal Bhansali v. Bharti Telecom Ltd., the Supreme Court held that a company can selectively extinguish minority shareholders capital under Section 66 of the Companies Act, provided the valuation is fair. It settled, for the first time, the legality of using Section 66 as a squeeze-out mechanism.