The Supreme Court on Tuesday restrained the Centre to disinvest its 29.5 per cent stake in Hindustan Zinc limited (HZl) by citing an apex court order of 2003 which made Parliament’s approval a must for any disinvestment proposal to go through.
Appearing for the Centre, Attorney General Mukul Rohatgi had approached the court suggesting that the profit-making PSU, whose management is under the control of a Vedanta subsidiary, will reap substantial monetary gains to the Government. He was answering the queries of the court raised in a petition filed by National Confederation of Officers’ Associations of Central Public Sector Undertakings that challenged the disinvestment.
The Bench of Chief Justice TS Thakur, Justices AK Sikri and R Banumathi asked the A-G how the Centre could override its order of 2003 since HZl was incorporated by the Metal Corporation (Nationalisation and Miscellaneous Provisions) Act 1976 and hence Parliament nod is mandatory before any change in its ownership is to be achieved.
The Bench said, “There will be status quo as of today pertaining to disinvestment of Hindustan Zinc ltd to be maintained by parties,” as it proceeded to hear the case on merits at a later date.