Supreme court orders a regular case on Hindustan Zinc

The Supreme Court on Thursday directed the CBI to register a regular case into the alleged irregularities in the disinvestment of government’s controlling share in Hindustan Zinc Limited (HZL) in 2002.

However, the apex court allowed disinvestment of the Centre’s residuary 29.5% share in the open market.

Centre can disinvest 29.5%

As per the recommendation of various officials of the CBI for converting the preliminary inquiry of disinvestment of HZL in 2002 into a regular case satisfies the conscience of the court, that a prima facie case is made out, said a bench of justices DY Chandrachud and BV Nagarathna.

The preliminary inquiry was closed and directed that the CBI should register a regular case and the agency shall file its periodic status report to the court, by taking into consideration of the fact that despite recommendation for registration of regular case into the alleged irregularities in the disinvestment in 2002.

The bench, however, directed the Central government that it can disinvest 29.5 percent of its residuary share in the open market, saying that after 2002, the HZL ceased to remain a government company.

But the bench had directed the Central government that it can disinvest 29.5% of its residuary share in the open market, and said that HZL ceased to remain a government company after 2002.

It said that since its divestment of shares in 2002, the central government had ceased to be in control of the erstwhile PSU company.