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Don’t hold up probe pending order on review: SC to CBI on HZL disinvestment case
Last month, CBI claimed that it was awaiting the order on the review petition of the Centre against the Supreme Court order for CBI probe into the 2002 HZL part-disinvestment
NEW DELHI: The Supreme Court on Friday told the Central Bureau of Investigation (CBI) not to hold up its probe into the alleged irregularities in the initial sale of government stake in Hindustan Zinc Limited (HZL) pending a decision on a review plea moved by Centre challenging the probe order passed by the top court in November 2021.
In a status report submitted to the top court in a sealed cover last month, CBI claimed that it was awaiting the order on the review petition of the Centre against the decision of the top court ordering CBI probe into the 2002 HZL part-disinvestment.
Taking serious exception to this stand by CBI, a bench of justices Dhananjaya Y Chandrachud and Aniruddha Bose said, “CBI has to comply with our order. You (CBI) cannot say that we cannot comply with the order pending review.”
The bench told additional solicitor general (ASG) KM Nataraj appearing for the investigating agency to convey this to the CBI officers and posted the matter after two weeks.
On February 7 this year, the top court refused to entertain an application moved by the Centre for recall of the November 2021 decision while allowing them to file a review petition. The Centre’s application claimed that the investigation report of the CBI was “incorrect”. This report was relied upon by the court to arrive at the conclusion that the sale of 26% stake in HZL in 2002 required to be investigated for wrongful loss caused to the public exchequer.
The sale made to Anil Agarwal-owned Sterlite Opportunities and Ventures Ltd (SOVL) was challenged before the Supreme Court in 2014 by the National Confederation of Officers Association of Central Public Sector Enterprises.
In 2002, when the National Democratic Alliance (NDA) led by Bharatiya Janata Party (BJP) was in power, it was decided to disinvest 26% of HZL equity through a strategic sale. Sterlite Industries emerged as the highest bidder, offering ₹40.5 per share for the government’s stake. The deal went through. Later, the government further divested around 19% stake at the same price to the private entity in November 2003. In all, the Government mopped up around ₹769 crore by selling 45% stake in HZL.
In the November 2021 decision, the court did not interfere with the Centre’s decision to further disinvest its remaining share of 29.5% in HZL. However, considering the preliminary enquiry investigation by CBI into the earlier sale along with other documents including report by the comptroller and auditor general (CAG), the court was convinced about alleged irregularities in the deal and directed the agency to register a regular case into the 2002 transaction. CBI was directed to submit quarterly status reports.
