New Delhi: The Delhi High Court on July 10 reserved its order whether a petition challenging the diversion of Videsh Sanchar Nigam Ltd (VSNL) funds to one of its group companies by Tata Sons Ltd, which acquired management control of the VSNL, recently, is admitted.

A bench comprising chief justice S B Sinha and justice A K Sikri reserved the order after hearing the arguments by counsel for the Forum for Justice and Peace (FJP) that had filed a public interest litigation (PIL) on the issue and additional solicitor general (ASG) K K Sud.

FJP counsel R K Maheshwari sought cancellation of the VSNL disinvestments agreement with Tata Sons Ltd as well as summoning of the records related to alleged transfer of Rs 1,200 crore by it to another group company Tata Tele Services after assuming control of the VSNL.

While Maheshwari said that the transfer of the VSNL funds to a company "unknown" to it amounted to violation of the disinvestments agreement, Sud said the "issue is being sorted out and all the questions have been put up for discussion before the VSNL board".

Stating that the disinvestment was a policy matter, the ASG said the court had limited jurisdiction in such cases as had been laid down by the Supreme Court.

As the ASG alleged that the PIL has been "sponsored by someone else," the Court said, "This is an allegation which you should not make on the cuff."

The FJP counsel said that his client was not against the policy of disinvestments but a private party, which assumes control of government entity in a disinvestments deal, could not be allowed to transfer its assets to another company.

PTI