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HC reserves order on Modi's plea on VSNL divestment

The Delhi high court on Monday reserved its judgement on a petition by Modi Corporation Ltd seeking inclusion in bid for divestment of Videsh Sanchar Nigam Ltd's Rs 100 billion equity along with three other companies whose bids will be opened on February 1.

Justice Manmohan Sarin after hearing over two-hour-long arguments from Attorney General Soli J Sorabjee appearing for the Union Government, Additional Solicitor General R N Trivedi for Videsh Sanchar Nigam Ltd and the petitioner's counsel, said the order would be pronounced later.

Modi Corporation Ltd counsel A M Singhvi pleaded that the court should issue direction for inclusion of his client in the bid as it fulfilled the requirement as floated by the VSNL in its April, 2001 public information memorandum.

The other contenders in the field are Tata, Reliance and the Sterling Industries, Singhvi informed the court.

However, Sorabjee said MCL had remained completely "silent" for about two-and-half months after the offer was floated by the VSNL and came in the picture after the process had passed through various stages.

While questioning the eligibility of the MCL, Sorabjee said, "the petitioners have admitted themselves that they have not given a proper bid. There was a complete silence on their part when they were required to submit it," he said.

Challenging the government's contention that the MCL did not fulfill the eligibility criteria under which value of the assets of a bidding company should be 25 per cent of equity offered for divestment, Singhvi claimed the company's assets inclusive of the shares of promoters was at the "threshhold" of fulfilling the condition.

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