SC allows further stake sale in Hindustan Zinc

Tribune News Service

New Delhi, November 18

The Supreme Court on Thursday allowed disinvestment of the Centre’s residuary 29.5% share in Hindustan Zinc Limited (HZL) in the open market even as it ordered a CBI probe into the alleged irregularities in disinvestment of the government’s controlling share in the PSU in 2002.

“The CBI is directed to register a regular case and periodically submit status reports of its investigation to this court. The aforesaid reports shall be submitted every quarter, or as otherwise directed by this Court,” a Bench led by Justice DY Chandrachud said.

The petitioners ndash; National Confederation of Officers Association of Central Public Sector Enterprises and Others had challenged the Government’s divestment of its shareholding in HZL, saying it was in violation of the court’s judgment in Centre for Public Interest Litigation versus Union of India.

However, the top court said the verdict had no application to this case as HZL had ceased to be a government company following the process of disinvestment which took place in 1991- 92 and 2002.

The Bench — which also included Justice BV Nagarathna — said the recommendation of various officials of the CBI for converting the preliminary inquiry of disinvestment of HZL in 2002 into a regular case satisfies the court’s conscience that a prima facie case is made out.