Bowing to pressure from the opposition, Divestment Minister Arun Shourie on Tuesday assured the Rajya Sabha that he would seek an opinion from Attorney General Soli Sorabjee on the legality of the sell-off of two oil PSUs Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.
"I will seek the opinion of Attorney General and report back to the house," Shourie said responding to Leader
of the Opposition Manmohan Singh who raised the issue during Zero Hour.
Manmohan Singh said his party wanted the government to seek the opinion of Sorabjee on the legality of the sell-off as the two oil companies were nationalised by acts of Parliament.
Therefore, it was necessary to get the legal opinion if divestment could be carried forward only through executive
order, Singh said.
He said Sorabjee should be called to the house to explain the legality of the sell-off as in his opinion, the divestment of the two PSUs could be carried forward only after amending or repealing the acts through which the oil companies were nationalised in 1974 and 1976.
Shourie said the Attorney General returned from his tour only on Sunday night and, hence, he had taken the views
of Solicitor General Kirit Rawal, who had told him the sell-off could be undertaken as the two oil PSUs after nationalisation came under the purview of Companies Act, which provided for expansion and contraction of equity.
The house was thrown into turmoil on Monday over this issue leading to abrupt adjournment for the day after left
parties and Rashtriya Janata Dal members trooped into the well, while the minister was replying to clarifications on a suo moto statement outlining the roadmap for the divestment of PSUs which was stalled for the last three months.
