IDBI Bank sale: Keep CCEA decision in abeyance pending independent inquiry, says EAS Sarma
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Former Secretary EAS Sarma asked the government to pause the IDBI Bank sale pending an independent inquiry.
- ✓He said, “I consider this decision to be ill-advised as it involves serious legal implications.” The CCEA approved the sale of a 60.72 per cent stake to Fairfax Financial Holdings for ₹52,878 crore.
Story at a Glance
- Category
- BUSINESS
- Reported By
- BusinessLine
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Former Secretary to government of India EAS Sarma has demanded that Cabinet Committee on Economic Affairs (CCEA) decision on October 14 to disinvest government’s and LIC’s holdings in IDBI be kept in abeyance pending an independent inquiry.
The findings should be presented to Parliament, Sarma wrote in his latest letter to Finance Minister Nirmala Sitharaman. “I consider this decision to be ill-advised as it involves serious legal implications, gross undervaluation of IDBI’s assets, and a breach of assurance given by government,” he said in the letter shared with businessline.
Sold for a ‘pittance’
Sarma recalled he had raised ‘multiple concerns’ about disinvestment in his previous letter of August 4, citing a ‘highly opaque, non-competitive environment.’ But CCEA has since approved selection of ‘M/s 10955230 Canada Inc., whose parent entity is Fairfax Financial Holdings Ltd.,’ as the strategic buyer for IDBI’s disinvestment.
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