The Supreme Court on Tuesday restrained the government from disinvesting the remaining 29.5 per cent shares in Hindustan Zinc Ltd in favour of Vedanta group.
A bench led by Chief Justice T S Thakur questioned the “hurry” being shown by the government in offloading its remaining stake in the public sector unit and said it cannot be done without the court’s permission.
“What is the compelling reason to disinvest further. Why are you in a hurry? Let us first hear the case. You will not disinvest your shares till our orders,” the bench told Attorney General Mukul Rohatgi.
Rohatgi responded it is a government’s policy and that HZL stopped being a government company in 2002 when the first disinvestment took place.
Senior lawyer C A Sundaram submitted before the bench that Vedanta is interested in taking over the remaining shares. He added the HZL was was a loss making company when Vedanta bought over the stakes in 2002 and it is now a profit-making firm.