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SC upholds Balco divestment, blasts Chhattisgarh govt

In a shot in the arm for the divestment policy, the Supreme Court on Monday upheld the Centre's decision to transfer 51 per cent of its share in Bharat Aluminium Company at Korba 'transparently' to the highest bidder Sterlite Industries for Rs 5.515 billion.

A three-judge Bench headed by Justice B N Kirpal, while holding the divestment in Balco as valid, came down heavily on the Chhattisgarh government for raising a controversy without any basis both regarding the transfer of tribal land on the transparency of the deal.

"It is a matter of regret that the Chhattisgarh government raised such allegations against the Union government. We strongly deprecate such allegations made without any basis," the Bench of Justice Kirpal, Justice Shivaraj V Patil and Justice P V Reddi said.

Writing the judgement for the Bench, Justice Kirpal said it was not for the court to consider the merit of the economic policies of the government.

"Parliament is the proper forum for questioning such policy," the bench said.

Giving a general ruling, the apex court said no ex-parte relief should be given specifically with regard to matters pertaining to economic policy unless grave irregularities were pointed out. "Only when the court is prima facie satisfied that there would be irreparable damage caused, then the interim relief could be granted," it said.

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