[Hindustan Zinc Disinvestment] Supreme Court Adjourns The Matter For Next Week

The Supreme Court Bench comprising Chief Justice SA Bobde, Justice AS Bopanna & Justice V Ramasubramanian have adjourned the matter related to disinvestment by Central Govt in Hindustan Zinc Ltd to next week.

In the present matter, the Central Govt in 2002 decided to divest its controlling shares to Hindustan Zinc Ltd. In 2014, a PIL was filed by an association of officers related to the PSU firm alleging illegalities in the disinvestment to bestow benefits to a few by undervaluing the shares & thereby requested for a CBI probe into the deal & restrain the govt from further divesting its share.

On the last date of hearing, the Bench directed Sr Adv Mr Harish Salve to file the status report.

Mr Prashant Bhushan appearing for the petitioner on the last date of hearing pressed for issuing a writ of Mandamus directing the Government to disinvest the residual share-holding which is 29.5% without amending MMTC Act. He also relied on Lalita Kumari v. State of UP to submit that “There are a few cases where there can be a criminal enquiry but if enquiry discloses a cognizable offence, the FIR should be registered. The reasons should be disclosed in brief to close the complaint”

In November 2013, a preliminary enquiry was registered by the CBI to look into the alleged corrupt practices but was closed irrespective of several officers of CBI recommending registration of a regular case for a further inquiry.

Last year, the Supreme Court decided to examine why the CBI decided to close its investigation in the matter & further declined to permit the Government to disinvest the remaining shares in the PSU by lifting its restraint order passed in January,2016.

The Bench on March 4, 2021 sought CBI’s response to provide a copy of its probe report closing the preliminary inquiry into the disinvestment of the govt’s share in Hindustan Zinc Ltd in 2002.

Case Title: National Confederation of Officers Association of Central Public Sector Enterprise & Ors v. Union of India & Ors