Oil PSUs' sell-off needs Parliament okay: Supreme Court

NEW DELHI: The Supreme Court on Tuesday ruled the government needed parliamentary approval for the disinvestment of PSU oil refiners HPCL and BPCL.
Giving its ruling on appeals filed by the Centre for Public Interest Litigation and Oil Sector Officers Association, the apex court said the government cannot go ahead with disinvestment "without appropriate parliamentary legislation".
The Bench comprising Justice S Rajendra Babu and Justice G P Mathur noted that two companies were acquired by the government after passing an appropriate legislation in Parliament in 1974.
Hindustan Petroleum Corporation Ltd has a nationwide network of more than 4,700 gas stations and controls about a fifth of the $15 billion retail oil market.
The due diligence for the divestment of the government''s 34.01 per cent stake in HPCL began on August 5. Reliance Industries initiated the process and after it scrutinised the books and installations, British Oil and gas major BP Plc visited the data room for the due diligence.
The Supreme Court had on September 5 reserved its verdict on petitions against HPCL and BPCL sell-off.
The government had said the Act of Parliament nationalising various companies in 1974 were of two kinds - one which imposed a specific bar on the government to lower its stake below 51 per cent and the other which did not contemplate any such condition.
The Acts nationalising banks and coal mines specifically provided that the government at all times shall hold not less than 51 per cent of the paid up capital but similar provision was not there in the Act for nationalisation of oil PSUs.