NEW DELHI: The Supreme Court on Thursday allowed the central government to disinvest its remaining shares in Hindustan Zinc Limited and also ordered registration of a regular case by the CBI into the alleged irregularities in the disinvestment of the government’s controlling stake in Hindustan Zinc Limited (HZL) in 2002.
The top court, however, allowed disinvestment of the Centre’s residuary 29.5% share in the open market.
A bench of Justices DY Chandrachud and BV Nagarathna said the recommendation of various officials of the CBI for converting the preliminary inquiry of disinvestment of HZL in 2002 into a regular case satisfies the court’s conscience that a prima facie case is made out.
It took note of the fact that despite a recommendation for registration of regular case into the alleged irregularities in the disinvestment in 2002, the preliminary inquiry was closed and directed that the CBI should forthwith register a regular case and the agency shall file its periodic status report to the court.
The court held that the Centre can disinvest the remaining 29.5% of its shares in Hindustan Zinc, since it isn’t a government company anymore.
In 2016, the Supreme Court had directed the central government to maintain status quo on the proposed disinvestment of the public sector undertaking (PSU) Hindustan Zinc Limited.
The government was thus restricted from initiating any process of further disinvestment of its shares in the PSU.