SC seeks CBI response on providing copy of probe into disinvestment of govt share in Hindustan Zinc

The Supreme Court on Wednesday sought the CBI's response on providing a copy of its probe report closing the preliminary inquiry into the disinvestment of the government's share in PSU Hindustan Zinc Limited in 2002. A bench headed by Chief Justice S A Bobde took note of the submission of lawyer Prashant Bhushan, appearing for an association of officers related to the PSU firm, that there were corrupt practises in divesting government shares in Hindustan Zinc Limited during the NDA regime.

On being told by Solicitor General Tushar Mehta that preliminary inquiry into the case has been closed, the bench asked him to apprise the court whether it can provide a copy of its closure report to the complainant which has alleged corrupt practices in the deal. "Solicitor General seeks time to make statement about the CBI report. List the matter on March 06, 2020 for the aforementioned extent," the bench said in its order.

Bhushan said a PIL was filed in 2014 by National Confederation of Officers Association of Central Public Sector Enterprises against the Centre's decision in 2002 to divest its controlling shares in Hindustan Zinc Limited. He said that the plea had sought a CBI probe into the alleged corrupt practices of various persons in striking the deal to divest the shares of the PSU firm to a private firm.

Bhushan said that the PIL has also sought a direction to the Centre not to further divest its shares of the PSU firm. He said that there was a judgement of the apex court in the matter related to disinvestment of HPCA holding that the government cannot divest its controlling stakes without amending the law related to that PSU firm.

Senior advocate Mukul Rohatgi, appearing for Vedanta group, said that the apex court judgement did not apply to the issue pertaining to the disinvestment of Hindustan Zinc Ltd. The law officer said the CBI, after conducting a preliminary inquiry, has found that there was no criminality involved in the case and deicide to close the probe.

Bhushan then referred to an apex court judgement in the Lalitha Kumari case and said that an FIR was required to be registered mandatorily once the commission of cognizable offence is prima facie made out. He also said the complainant association was required to be supplied with the closure report of the CBI in the case.

"The issue is whether the copy of the CBI report can be given to the complainant," the bench observed and fixed the matter for further hearing on this aspect on March 6. It was submitted that initially the Centre decided to divest its 75 per cent controlling stakes in the PSU from 75 per cent to 49 per cent and later it was brought down to the level of 26 per cent..