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HC adjourns PILs challenging Balco divestment

The Delhi high court adjourned two Public Interest Litigations (PIL) challenging the Centre's decision to divest 51 per cent of its stake in Bharat Aluminium Company Limited (Balco) on Monday.

A division bench, comprising Chief Justice Arijit Pasayat and Justice D K Jain, said since the issue was in Parliament, the court should not examine or interfere into it.

The petitions, filed by Balco Employees' Union and an advocate, B L Wadhera, were adjourned till March 27.

However, the judges clarified that the pendency of the matter would not come in the way of Balco's business dealings.

Solicitor-General Harish Salve said this was the first major case of divestment, which was in its final stages.

He also said all facts and figures would be made public and the divestment plans were conducted in a transparent way.

The government had on Wednesday decided to sell 51 per cent stake in Balco to Sterlite Industries Ltd for Rs 5.51 billion along with the transfer of management, marking the first divestment this year.

However, the decision touched off a storm in and outside Parliament with political parties and workers alleging that the cash-rich aluminium major had been sold for a song.

On Saturday, Prime Minister Atal Bihari Vajpayee directed that the controversial deal be kept under abeyance until a discussion in Parliament.

The company has a credible financial record, having earned a profit of Rs 448.9 million, paying a dividend of Rs 180 million and contributing Rs 2.91 billion to the government by way of taxes and duties.

Besides, its books reflected a net profit of Rs 1.10 billion for the year 1999-2000.

Also, the company has extremely high value assets, including plants and machinery at Korba unit in Madhya Pradesh with 217 MW power plant which alone is valued at Rs 8 billion.

ALSO SEE:
Govt Holds Up BALCO Deal Till Mar 1

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