Shourie 'questions' SC verdict on disinvestment of oil PSUs

He said the verdict could lead to reopening of divestment process in govt companies ever since 1991.

Disinvestment Minister Arun Shourie on Thursday raised questions over the Supreme Court judgement halting disinvestment in two oil PSUs -- HPCL and BPCL -- without prior approval of Parliament saying it could lead to reopening of divestment process in government companies ever since 1991.

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"On this principle (SC's September 16 judgement) disinvestment of all companies should be subject to clearance of Parliament. It cannot apply only to companies when you sell shares (to bring down government equity) from 51 per cent to 49 per cent because every single share has been paid out of the Consolidated Fund of India.

"So how even minority shares have been sold since 1991," Shourie told PTI after studying the judgement in detail.

Referring to the court's observation that because all expenditure from the consolidated fund is approved by Parliament and therefore disinvestment could not take place without its approval, Shourie said that this logic would not only apply to the two oil PSUs but also to companies set up under Acts of Parliament or Nationalised in a similar manner.

This, he said, was because shares were bought out from the Consolidated Fund of India and dividend was paid into that fund.