[ By Bobby Anthony ]The Supreme Court has given time to the central government until March 6, 2020, to issue a statement about handing over a copy of a Central Bureau of India (CBI) closure report on the disinvestment of Hindustan Zinc Limited (HZL), which took place in 2002.A bench headed by Chief Justice of India S A Bobde, also comprising Justice B R Gavai and Justice Surya Kant heard a...
The Supreme Court has given time to the central government until March 6, 2020, to issue a statement about handing over a copy of a Central Bureau of India (CBI) closure report on the disinvestment of Hindustan Zinc Limited (HZL), which took place in 2002.
A bench headed by Chief Justice of India S A Bobde, also comprising Justice B R Gavai and Justice Surya Kant heard a public interest litigation (PIL) filed by the National Confederation of Officers’ Association (NCOA) against the disinvestment of Hindustan Zinc Limited (HZL). The CBI had initiated the preliminary enquiry (PE) in 2013.
Advocate Prashant Bhushan who represented the NCOA informed the Supreme Court that on the basis of information received through the Right To Information (RTI), the Department of Legal Affairs in December 2012 had opined that disinvestment of more than 50% of HZL shares would change its character from a public company to an ordinary company.
This is not permissible in the light of provisions contained in the Metal Corporation (Nationalization & Miscellaneous Provision) Act 1976 and also cited a 2003 Supreme Court judgment.
Presently, HZL happens to be a subsidiary of Vedanta Limited which owns a 64.9% stake in the company, while the government of India retains a 29.54% stake.
In 2016, the Supreme Court had directed the Modi government to maintain status quo on the proposed disinvestment of HZL.
It was a huge blow, which restricted the government from initiating any process to disinvest HZL which happens to be the world's second largest zinc producer, and also delayed Vedanta Resources taking control of the company.