The move has been prompted by the collaborator's insistence on a fresh valuation of shares and a consequent price review as it considers the nearly year-long pricing to be old. The Indian promoters fear that they may be short-changed with regards to the sale price.

The sale price for Polychem's holding had been fixed at Rs 43 crore. UDV holds the balance stake in IDI, but the Foreign Investment Promotion Board (FIPB) has yet to clear its proposal to hike stake in IDI.

Since 11 months have elapsed after the initial valuation, a fresh look at the value of the company is essential to ratify the price. A fresh valuation is inevitable once the approval comes and the Kilachands do not intend to lower the price, said a top IDI official.

Sources said that the company isexploring the possibility of selling its stake to the UB group. However, UB officials denied any such development.

The Kilachands are also hard-pressed to sell their stake as the group is believed to be cash-strapped. It has begun a major restructuring in group companies, including flagship Polychem which has announced divestment of one of its units to Vam Organics.

Polychem is mired in a financial crisis and its restructuring plans are in limbo for want of money. Also, the delayed FIPB clearance has made matters worse. The company now feels that UDV may demand a lower price and hence is exploring the possibility of selling its stake to UB group, sources said.

There have been rumours of Polychem's proposal for the stake sale being cleared by CCFI recently, but the company is yet to receive any such document, sources said, adding that the inordinate delay has forced the company to scout about for a domestic buyer.

UDV's proposal was pending with the FIPB for the last eight months with the industryminister Sikander Bakht referring the application to CCFI recently. Inter-departmental rivalry is said to be the reason for the delay and the food and chemicals minister SS Barnala had taken strong exception to the manner in which the proposal was being treated.

Another version doing the rounds is that the government's decision to give the approval only after the announcement of the new liquor policy has also delayed the process.

IDI, makers of the popular Smirnoff Vodka and Gilbey's whisky, has a 5 per cent share of the Indian-made foreign-liquor (IMFL) market. The IMFL market is dominated by UB group with a share of around 40 per cent followed by Shaw Wallace with 28 per cent. Jagagit Industries and Mohan Meakin have a market share of 18 per cent and 10 per cent.