Finance Ministry says Centre allowed to sell stake in IDBI Bank, refers Delhi HC's 2018 judgement to defend dilution
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Finance Ministry said on 17 October that the Centre can sell its stake in IDBI Bank.
- ✓It used a 2018 Delhi High Court judgement to defend this plan.
- ✓The court noted, "The statements made before the House cannot substitute or override the statue so enacted by the Parliament."
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- MARKET
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- mint
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- 4 Minute(s)
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- India Economy
The Finance Ministry in an official statement today, 17 October, clarified legislative developments concerning the Centre's shareholding in IDBI Bank and defended its dilution plan for the lender.The PIB release reiterated that during the discussions of Union Budget, 2003 and the parliamentary debate on the IDBI (Repeal) Act, 2003, an amendment seeking to restrict the dilution of the government's stake was moved but was ultimately rejected and did not form part of the enacted legislation.It added that the matter was subsequently examined by the Delhi High Court in All India IDBI Officers' Association v. Union of India & Others decided on 17 December 2018. It said the judgement did not preclude the Centre from diluting its stake and statements made before the House cannot override a statue enacted by the Parliament.What did the Delhi HC judgement state?According to the release, the High Court, while dismissing the writ petition, adjudicated in paragraphs 41 and 42 as follows:
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