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SC notice to Centre on HPCL, BPCL divestment

By J. Venkatesan

NEW DELHI July 25. The Supreme Court today issued notice to the Centre on a petition questioning its controversial decision to disinvest equity shares in the Hindustan Petroleum Corporation Ltd. (HPCL) and the Bharat Petroleum Corporation Ltd. (BPCL).

A Bench, comprising the Chief Justice, V.N. Khare and Justice S.B. Sinha, also issued notice to the HPCL and the BPCL returnable in two weeks with a week's time to the petitioner for rejoinder.

The notice was issued to the respondents on the petitioner's plea for staying the implementation of the decision to disinvest after senior counsel, F.S. Nariman, urged that the issue required immediate consideration as it had been done by an executive order.

The Bench directed that the petition filed by Oil Sector Officers' Association be tagged on with another petition from the Centre for Public Interest Litigation in which notice had already been issued.

The petitioner assailed the decision on the ground that it had been taken without the approval of Parliament.

It was submitted that when members raised the issue in Parliament, the Government announced that it would seek the views of the Attorney-General, Soli Sorabjee.

On January 20, the Attorney-General gave an opinion that no Parliamentary approval was required for effectuating the Government's policy decision.

He also said that his opinion was not sought on the legal merits of the decision, which would depend on the provisions of the shareholders' agreement between the Government and the selected strategic partner.

On January 26, the Cabinet Committee on Disinvestment approved the proposal of the Disinvestment Ministry to sell off 38.2 per cent of equity shares of the BPCL and 34.01 per cent equity shares of the HPCL.

The petition contended that it appeared from these steps that the Government intended to complete the sell-off without seeking Parliament approval.

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