Oil PSU sell-off: govt starts filing caveats in courts

NEW DELHI: Apprehending that the divestment in oil PSUs could be challenged, the Disinvestment Ministry on Tuesday started the process of filing caveats in various high courts and in the Supreme Court on the proposed sale of equity in Hindustan Petroleum and Bharat Petroleum.
Besides the Supreme Court, the caveats are being filed in the high courts of Bombay, Madras and Calcutta by the government to pre-empt any party from challenging the decision on HPCL and BPCL in courts of law and getting an ex-parte order.
The caveats come on top of the favourable opinion that the government received from Attorney General Soli Sorabjee that there was no need to seek parliamentary approval for disinvestment in HPCL and BPCL which were acquired and nationalised in 1970s through Acts of Parliament.
Within a day of Cabinet Committee on Disinvestment (CCD) taking a decision to divest 34 per cent equity in HPCL to a strategic partner and sell 35 per cent equity in BPCL through a public offer, unions in oil sector PSUs and several Opposition parties including Congress and CPM had severely criticised the government for the decision.
"We are fully prepared to face any eventuality and caveats are a part of it," an official of the Disinvestment Ministry said on condition of anonymity.