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Home -> Finance -> Full Story
HC allows plea challenging VSNL disinvestment
Monday, June 17 2002 18:40 Hrs (IST)

New Delhi: The Delhi High Court on June 17 allowed an amended writ petition seeking quashing of the disinvestment agreement between government and Tata Sons Ltd on management control of Videsh Sanchar Nigam Limited (VSNL).

Without issuing notices to any of the respondents, a Bench comprising Justice M A Khan and Justice R C Chopra fixed July 10 as the next date of hearing on the matter.

Besides seeking setting aside the agreement reached between government and Tatas on the VSNL disinvestment, the amended petition has requested the court to call for the records of the case from the respondents.

Additional Solicitor General (ASG) K K Sud, appearing for the Centre and senior advocate and former Finance Minister P Chidambram appearing for VSNL opposed the petition saying it was not maintainable.

Chidambaram contended that after the Supreme Court judgement in the Bharat Aluminium Company (BALCO) disinvestment case, there was no case in this petition.

He said even in the amended petition there was only addition of paragraphs and there were no averments.

The ASG submitted that there was no urgency to bring the matter before the vacation court as the disinvestment agreement took place in February.

Earlier on June 7, the court while refusing to issue notices to the Ministry of Communication and Information Technology, VSNL, Tatasons Ltd and Tata Tele Services had given liberty to Forum for Justice and Peace (FJP), which had filed a Public Interest Litigation (PIL) highlighting the ongoing controversy over alleged transfer of Rs 1200 crore by VSNL to Tatas, to amend the prayer part of its petition.

PTI