The Supreme Court on Tuesday restrained the government from going ahead with any further disinvestment of its stake in Hindustan Zinc Ltd, the management of which is under the control of a Vedanta subsidiary.
The Apex Court also questioned the government for selling of 29 per cent of valuable shares in the company, which deals with the strategic minerals. “There will be status quo as of today pertaining to disinvestment of Hindustan Zinc Ltd to be maintained by parties,” a Bench comprising Chief Justice TS Thakur, Justices AK Sikri and R Banumathi said.
The Bench clarified that it was not stopping Sterlite Vedanta, which has taken over the company, from carrying out investment and only stopping the government from selling its residuary shares in the company.
The Bench said it will not allow any further disinvestment till the matter is heard and admitted the petition. Senior advocate CA Sundaram, appearing for Vedanta, submitted that the company had taken over the majority stakes 14 years ago when HZL was a loss-making firm and now it has emerged as a profit-making unit.
The court, however, asked Attorney General Mukul Rohatagi, “What is the requirement to hand over the valuable assets to Vedanta. Don’t do this and don’t go for the disinvestment. We will hear the matter. We will not allow them to sell.”