From The Economic Times · ET Online · · 1m 10s
Finance Ministry clarifies IDBI Bank stake legislative history
Finance Ministry confirms 2003 IDBI Bank stake law was not meant to prevent share dilution.
In brief
Finance Ministry confirms 2003 IDBI Bank stake law was not meant to prevent share dilution. Finance Ministry says 2003 IDBI Bank law did not prevent government from reducing stake after Delhi High Court cleared dilution. Originally reported by The Economic Times.
Finance Ministry clarification
Finance Ministry issued clarification on media reports questioning legislative developments in 2003 concerning government's stake in IDBI Bank.
CCEA approved IDBI Bank sale
Cabinet Committee on Economic Affairs approved strategic restructuring of IDBI Bank Ltd. to sell 60.72% stake to Fairfax Financial Holdings for Rs 52,878.08 crore.
2003 amendment rejected
Centre moved amendment to restrict government's stake dilution in IDBI Bank but it was rejected during 2003 Union Budget and parliamentary debate.
Delhi High Court decision
Delhi High Court dismissed writ petition in All India IDBI Officers’ Association v. Union of India case on 17 December 2018.
Court ruling on dilution
Court held statements in Parliament during IDBI (Repeal) Act, 2003 debate did not prevent government from diluting stake in IDBI Bank.
Policy evolution
Legislative history, court judgment and successive Union Budget speeches show government's policy evolution on strategic disinvestment of IDBI Bank.
In short
Finance Ministry says 2003 IDBI Bank law did not prevent government from reducing stake after Delhi High Court cleared dilution.