The Finance Ministry has defended the Centre’s plan to dilute its stake in IDBI Bank, citing the legislative history of the lender’s restructuring and a 2018 Delhi High Court judgment. In an official statement issued on October 17, the ministry said neither the legislation enacted in 2003 nor the court’s ruling prevented the government from reducing its shareholding.
\n\nThe clarification comes amid the Centre’s proposed strategic disinvestment of IDBI Bank. The ministry reiterated that an amendment seeking to restrict the dilution of the government’s stake was proposed during discussions surrounding the Union Budget in 2003 and the parliamentary debate on the IDBI (Repeal) Act, 2003. However, the amendment was rejected and was not included in the final law.
\n\nThe ministry also referred to the Delhi High Court’s judgment in All India IDBI Officers’ Association v. Union of India & Others, delivered on December 17, 2018. According to the government, the ruling established that statements made during parliamentary debates could not override enacted legislation or prevent the Centre from diluting its stake.
\n\nThe Finance Ministry said the Delhi High Court examined whether statements made in Parliament could be used to prevent the government from reducing its ownership in IDBI Bank.
\n\nWhile…
Original source: https://www.timesnownews.com/business-economy
