Bombay HC rejects pleas opposing disinvestment nod over BPCL stakes

MUMBAI: Holding that “there is no legal impediment for disinvestment by the Union of its controlling stake in BPCL,” Bombay High Court dismissed a bunch of petitions challenging a disinvestment nod.
A bench of Justices S C Gupte and Madhav Jamdar on November 12 dismissed petitions by All India federation of petrol dealers association and others. It upheld a November 20, 2019, decision of the cabinet committee of economic affairs (CCEA), headed by the prime minister, to grant in-principle approval for disinvestment of government share in Bharat Petroleum Corporation Limited (BPCL) – India’s second-largest public sector oil and gas company.
The main challenge was that with no law on acquisition, an informed parliamentary approval to disinvestment had to precede any strategic disinvestment by the Union of its controlling stake in the company.
The HC also said that the parliament had repealed the Burmah Shell Acquisition Act in 2016.
“The present governing dispensation is well within its powers to take such decision,” said the bench regarding the in-principle approval.
The court said the policy decision of acquiring Burmah Shell was based on the economic theory and socio-economic policy prevailing at the time.