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SC dismisses PIL challenging Centre's divestment policy

Close on the heels of the Balco judgement upholding the government's decision to divest in public sector undertakings, the Supreme Court on Monday dismissed a public interest litigation challenging the Centre's divestment policy.

A Bench comprising Justice G B Pattanaik and Justice Ruma Pal dismissed the PIL filed by one R D Rao against the chairman, Divestment Commission, on the ground that a three-judge Bench in the Balco judgement has already upheld the validity of the divestment policy.

The petitioner contended that without a proper enactment of legislation by the Parliament on this issue, the government could not go ahead with selling of its shares in Balco, Air-India, SAIL and other public sector undertakings.

He had prayed for constitution of a seven-judge Bench to consider the constitutional validity of the divestment policy of the government and to examine the legality of past divestments in public sector undertakings.

The Bench said the Parliament comprised members elected by the people and was competent to deal with the issue and flayed the petitioner, saying on the request of a single individual a larger Bench could not be constituted.

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