National

SC rejects plea against disinvestment policy

By Our Legal Correspondent

NEW DELHI Nov. 19. The Centre on Tuesday dismissed a public interest petition questioning the Centre's disinvestment policy on the ground that it was knocking down the economic foundations and threatening the very economic structure of the country.

A three-judge Bench comprising Justice V.N. Khare, Justice Ashok Bhan and Justice Arun Kumar dismissed the petition filed by 15 trade unions observing that ``disinvestment is a policy matter of the Government and we will not interfere in it''.

The Bench noted that in the `Balco case' also the court had laid down the law saying that it was a policy matter with the Government and the courts should not interfere in the same. Even a socialist country such as China had adopted economic liberalisation and brought in requisite reforms in its economy, the Bench pointed out and dismissed the petition.

The petitioners contended that the policy was so irrational and arbitrary that public sector undertakings whether they were making profit or loss were subjected to outright sale, which had resulted in disastrous consequences such as enormous unemployment and poverty. They said the action of the Government had resulted in loss of livelihood of lakhs of employees, who were being terminated.

© Copyright 2000 - 2009 The Hindu