NOVEMBER 18, 2021
The Supreme Court (SC) has cleared the divestment in Hindustan Zinc
Limited (HZL), CNBC-TV18 reported. HZL has ceased to be a government company as
the government, an ordinary shareholder, has a 29.5 percent residuary stake, SC
added.
The court added that the government was entitled to make a decision on
divestment shareholding, as long as the process is transparent and realizes the
best prices.
Centre sought closure of preliminary inquiry into 2002 Hind Zinc
divestment. However, the court held that there existed a prima facie case of
violation of divestment norms in the 2002 government stake sale and disallowed
the closure. The court directed a regular CBI probe into it now.
In 2014, the Central Public Sector Enterprises (CPSEs) moved an
application in the court alleging undervaluation of shares during 2002
divestment.
Following the allegations, the apex court stayed any further divestment
of government stake in the company in 2016.