Author: Times News Network
Publication: The Times of India
Date: November 1, 2006
Introduction: Ruling vindicates NDA Govt's
decision, setback for left
The supreme court on Tuesday green-lighted
the controversial 2001 policy decision of the NDA government to divest its
shares in the loss-making Ashok Group of Hotels, for which then disinvestment
minister Arun Shourie had drawn flak from Congress and Left.
Repelling the challenge to the disinvestment
in the hotels from employees' unions, a bench comprising Justices A R Lakshmanan
and A K Mathur built upon the law laid down by the apex court while upholding
the decision to disinvest in PSU Balco.
The outcome marks a vindication for NDA government,
particularly for Arun Shourie, who had strongly refuted charges of wrongdoing.
Conversely, it marks a setback to Left's vociferous campaign against disinvestment.
Centre had issued an advertisement for the
outright sale of six hotels and long-term lease of two hotels. The first to
go under the hammer was Hotel Agra Ashok fetching Rs 3.90 crore. This was
challenged by employees on the ground that the value of the land and the building
of the hotel itself was more than Rs 5.58 crore, as valued by Agra Cantonment
Board, and that the market price could cross Rs 20 crore.
Finding no fault with the decision to disinvest
in ITDC hotels, including the sale of Hotel Agra Ashok to M/s Mohan Singh
and Yamuna View Private Lid, the bench said, "The government has acted
on the advice of experts before taking a decision to disinvest its share in
ITDC Ltd."
It said, "Even thereafter, through a
fair and transparent process, the government has ensured that it has got the
best price for its shares. It is also pertinent to notice that the government
has not received any other higher offer"
Justice Lakshmanan, writing the judgment for the bench, said the challenge
by the hotel's employees, who were not government servants but were merely
working in the PSU, holds no water as their services are being continued under
the new dispensation without any change in their employment conditions.
The SC rejected the employees' contention
that they be also offered VRS similar to the one given to employees of ITDC
Tours and Travels.
