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SC dismisses PIL challenging divestment policy

The Supreme Court on Monday dismissed a public interest litigation challenging the Centre's divestment policy on the ground that the government by selling its shares in the public sector units has abdicated its duty towards the Constitution, which called for implementation of a socialistic pattern of economy.

A Bench comprising Justice V N Khare, Justice Ashok Bhan and Justice Arun Kumar dismissed the PIL filed by 15 trade union organisations observing, "Divestment is a policy matter of the government and we will not interfere in it."

Counsel for the petitioners G S Rao contended that the policy of divestment was violative of Article 21 of the Constitution as it was affecting the livelihood of many people whose jobs were being terminated.

The Bench said in the Balco divestment case the apex Court has laid down the law saying that it was a policy matter with the government and the courts should not interfere in the same.

Rao contended that socialistic system was embedded in the Constitution and the people were being deprived of economic justice as the government was effecting replacement of the existing economic system with the capitalistic system.

The Bench observed that even a socialist country like China has adopted economic liberalisation and brought in the requisite reforms in its economy.

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