In Brief
The National Confederation of Officers Association challenged the Union Government's decision to disinvest its remaining 29.54 per cent shareholding in Hindustan Zinc Limited (HZL), arguing that the Nationalisation Act 1976 required parliamentary approval for such sale. The Supreme Court held that Centre for Public Interest Litigation did not apply, as HZL had already ceased to be a government company in 2002 when shareholding fell below 51 per cent. The Court ruled that the Union Government, as an ordinary shareholder in a listed company, could exercise shareholder rights transparently and in accordance with SEBI regulations. However, the Court found prima facie evidence of irregularities in the 2002 disinvestment and directed the CBI to register a criminal case. The petition was partially allowed.
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