# Finance Ministry clarifies IDBI Bank stake legislative history

> Finance Ministry confirms 2003 IDBI Bank stake law was not meant to prevent share dilution.
- Title: Finance Ministry clarifies IDBI Bank stake legislative history
- Summary: 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…
- Keywords: idbi bank, finance ministry, delhi high court, idbi repeal act 2003, strategic disinvestment, fairfax financial holdings, cabinet committee on economic affairs, Finance, Ministry, clarifies, IDBI, Bank
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/banking/finance-ministry-clarifies-on-legislative-developments-concerning-govts-idbi-bank-stake/articleshow/135007224.cms
- Author: ET Online
- Published: 2026-10-17T04:31:00+00:00
- Read time: 1 min
- Topics: idbi bank, finance ministry, delhi high court, idbi repeal act 2003, strategic disinvestment, fairfax financial holdings, cabinet committee on economic affairs
## 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.
## Key takeaway

Finance Ministry says 2003 IDBI Bank law did not prevent government from reducing stake after Delhi High Court cleared dilution.