Mumbai: Indian lenders of Dabhol Power Company (DPC), led by the Industrial Development Bank of India (IDBI), have moved the Mumbai High Court to treat "null and void" a letter written by lenders of bankrupt Enron Corp to consider jurisdiction of New York courts for DPC sale, IDBI chairman P P Vora said on March 20.

DPC lenders have challenged this contention and "our stand is the Mumbai court's jurisdiction is appropriate to deal with matters relating to Dabhol including sale of stake by foreign stakeholders in the power project", Vora told reporters here.

"Lenders of US-based Enron Corp have written to us that we have to deal with DPC matter in the jurisdiction of New York and we have challenged this in the High Court," he added.

Vora, however, refused to elaborate on negotiations between lenders and offshore stakeholders - Enron, GE and Bechtel over the standoff and delay in due diligence.

All three equity holders have sought a minimum bid of $ 550 million for sale of their 85 per cent stake in three billion Dollar power project.

They have also demanded that "the proposed tender offer process to move forward quickly and the sale was essential to protect and recover the company's investment in the project which is made in good faith".

PTI