LIC case: Make Centre, SEBI & ITC respondents, says Bombay HC

The Bombay High Court Thursday asked for business conglomerate ITC Ltd, the Union Ministry of Finance, the Ministry of Industries and Commerce, and SEBI to be made respondents in a public interest litigation by doctors from Tata Memorial Hospital, against Life Insurance Corporation’s investments in ITC. According to the petition, LIC, a state-owned enterprise, holds one-third equity in ITC, which derives 80 per cent of its revenue from sale of cigarettes.

“While the Union and state governments are making efforts and promoting anti-tobacco warnings and programmes, the LIC is investing in a company which derives majority of its revenue from the sale of cigarettes. This is contrary to the government’s efforts to eradicate use of tobacco,” petitioner’s counsel Venkatesh Dhond argued.

“All those persons who may be affected by the petition will have to be impleaded and their side will have to be heard,” the court said, posting the petition for further hearing after eight weeks. The court, however, sought to know if the Union government had any policy on the issue. The PIL has been filed by seven petitioners.