Verdict reserved in BALCO disinvestment case

By Our Legal Correspondent

NEW DELHI, SEPT. 6. The Supreme Court today reserved orders on a batch of petitions questioning the decision of the Union Government to disinvest 51 per cent of its share in Bharat Aluminium Company (BALCO) in favour of Sterlite Industries for Rs. 551.5 crores.

A Bench comprising Mr. Justice B.N. Kirpal, Mr. Justice Shivaraj V. Patil and Mr. Justice P.V. Reddi, reserved orders at the conclusions of arguments from the parties. However, the Bench permitted the petitioners and the Chhatisgarh Government to give their written submissions within 10 days and the Centre's response within 10 days thereafter.

Appearing for the Centre, the Attorney-General (AG), Mr. Soli Sorabjee, maintained that the disinvestment was done following all norms and procedure. He said courts should not interfere in matters of valuation of assets unless the methodology adopted was arbitrary.

The AG submitted that in the four methods of valuation adopted, even if the highest valuation was taken into account, the Government had got a good price of Rs. 551.5 crores for the sale of its 51 per cent share in the BALCO.

Mr. Sorabjee also objected to the allegation of malafide made by the Chhatisgarh Government and submitted that the charges levelled against the Disinvestment Chairman and others by the State Government were totally unfounded, unfair and irresponsible and requested the court to expunge the remarks.

The court, in its observations, then took exception to the manner in which the Chhatisgarh Government had imputed motives against the Disinvestment Commission Chairman.

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