The Supreme Court on Tuesday said the Centre could not privatise oil PSUs -- HPCL and BPCL -- without prior approval from Parliament.
Following are the highlights of the judgement:
- Government restrained from proceeding any further on the privatisiation of HPCL and BPCL
- Privatisation of HPCL and BPCL without prior approval from Parliament 'not permissible at all.'
- Balco judgement not applicable as the aluminium company was not created by an Act of Parliament like the public sector oil companies.
- The government should approach Parliament for amending the parliamentary laws to permit divestment.
- Character of oil PSUs as government companies provided in the statute cannot be changed by an executive decision.
- If the government was permitted to divest its stake in the PSUs below 51 per cent making them ordinary companies, it would have been provided for in the statute.
- If divestment takes place and the PSUs cease to be Government companies, the parliamentary laws providing that they should be government companies 'will be a fallacy.'
