The divestment ministry does not plan to insert any clause that will restrict the re-sale of companies, which have been fully divested by the government.
"If the entire government holding is transferred to a private sector company, we cease to have any rights on the entity.
"If the private player is able to sell it for a profit later, we cannot object to it as long as the other terms of the sale are not violated," a senior divestment ministry official said.
When the Delhi Centaur hotel was sold, the issue had cropped up, but the cabinet committee on divestment held that a restrictive clause was not necessary, he said. Such a clause would reduce the valuation of the company to be sold, he added.
The official said that all divestment deals are carried out through a "well-laid down and transparent" procedure evolved from the experience of selling several government companies in the recent past.
The issue has assumed significance after the parliamentary committee on transport, tourism and culture, on Tuesday, pulled up the civil aviation ministry over the controversial divestment of the Mumbai Centaur property of the Hotel Corporation of India.
The committee had suggested an investigation into the acquisition of the property by A L Batra-controlled Batra Hospitality Ltd.
The committee had also pulled up the civil aviation ministry for failing to realise the full value of the property as the Batra group sold Centaur for a profit by transferring its entire holding in Batra Hospitality to the Sahara India group.
The official refused to comment on the report but pointed out that Attorney General Soli Sorabjee had found no fault with the divestments deal.
The government's legal adviser had also said that the A L Batra group had not committed any illegality by transferring the shares of Batra Hospitality along with the Centaur hotel to the Sahara group.
In the case of companies where only a part of the government equity holding is divested in favour of a strategic partner, the shareholders' agreement binds both the sides to certain conditions, including the manner in which the equity could be sold by either the government or the new management.
Sale clause
Government not to insert clause restricting private players from selling divested property as long as other terms of sale are not violated.
During the Delhi Centaur hotel sell-off, the CCD had held that a restrictive clause was not necessary.
Issue has assumed significance after parliamentary panel report on Mumbai Centaur hotel sell-off.
