Respond to PIL over disinvestment: Karnataka HC to Bharat Earth Movers

The Ministry of Finance and DIPAM issued a preliminary information memorandum on January 4 last year for global invitation of EoI regarding the proposed strategic transaction.

Published: 19th January 2022 02:45 AM  |   Last Updated: 19th January 2022 02:45 AM   |  A+A-

Karnataka High Court (File Photo| EPS)

By Express News Service

BENGALURU : The Karnataka High Court on Tuesday directed Bharat Earth Movers Limited (BEML) to submit its response to a public interest litigation questioning the validity of the decision of proposed strategic transaction of disinvestment.

The Ministry of Finance and Department of Investment and Public Asset Management (DIPAM) issued a preliminary information memorandum on January 4, 2021, for global invitation of expression of interest (EoI) regarding the proposed strategic transaction of disinvestment.  

Hearing the petition filed by BEML staff association and three other BEML employees' associations, a division bench of Chief Justice Ritu Raj Awasthi and Justice Suraj Govindaraj issued notice to BEML and directed it to submit its response after senior advocate Prof Ravivarma Kumar, appearing on behalf of the petitioner, questioned the validity of the decision.

The petitioner alleged that the decision to privatise is an effort by the government to allow back-door entry to corporations in the defence sector and will compromise national security, sovereignty and integrity.

It was stated in the petition that the organised labour protests by the employees' unions had halted the plans of the MoF and DIPM in divesting its share in the BEML for almost five years, since the In-Principle approval was passed on October 27, 2016 for strategic disinvestment of 26 percent equity in the BEML Limited out of the government of India shareholding of 54.03 percent along with management control of the BEML, which plays a vital role in defence, aerospace and other fields.  

The EoI from interested bidders have been received and the evaluation process by the transaction advisor in underway, the petitioner said, adding that the sale of BEML would undermine the goal of “Atmanirbhar Bharat”.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp