CBI to initiate preliminary enquiry into disinvestment of HZL

CBI will soon initiate a preliminary enquiry into the disinvestment of a public sector undertaking Hindustan Zinc Limited in 2002 which was done in alleged violation of norms.
CBI sources said they have sought documents pertaining to strategic sale of government's share in the HZL to Sterlite Opportunities and Ventures Limited.
They said the agency has asked details from Mines Ministry on the privatisation of the HZL and nationalisation of Metal Corporation of India Ltd.
The agency is trying to find out why the disinvestment was done without the approval of the Parliament, they said.
According to the sources, 26 per cent of government shares in HZL and the management control were given to Sterlite in 2002 after a two-year exercise. Another 19 per cent stake was given to Sterlite a year later.

The matter was later raised by advocate Prashant Bhushan, before the Finance Minister Pranab Mukherjee, who highlighted alleging illegality in selling the remaining stake to the Sterlite as the process undertaken in 2002 was against the law laid down by the Supreme Court which has stopped the disinvestment of Hindustan Petroleum on similar grounds.

This position was upheld by the Law Ministry which stopped further handing over of shares saying it could only be done after amending the Metal Corporation Act.
He also alleged that HZL was sold at an undervalued price of Rs 445 crore.
CBI sources said they have sought the documents and might soon proceed with the preliminary enquiry into the matter.