The Hindu Business Line : Shourie to seek A-G opinion on oil PSUs sell-off

THE Disinvestment Minister, Mr Arun Shourie, has said that he would seek the opinion of the Attorney-General, Mr Soli Sorabjee, on the legality of the sell-off of the oil two PSUs — HPCL and BPCL.

"I will seek the opinion of the Attorney-General and report back to the House," Mr Shourie said, while responding to the issue raised by the Leader of the Opposition, Dr Manmohan Singh, in the Rajya Sabha on Tuesday.

Dr Singh said that his party wanted the Government to seek Mr Sorabjee's opinion on the legality of the sell-off as the two oil companies were nationalised by Acts of Parliament.

Therefore, it was necessary to get legal opinion if disinvestment could be carried forward only through an executive order, Dr Singh said.

He said that the Attorney-General should be called to the House to explain the legality of the sell-off as in his opinion, the disinvestment of the two PSUs could be carried forward only after amending or repealing the Acts through which the oil companies were nationalised in 1974 and 1976.

Mr Shourie said that the Attorney-General returned from his tour only on Sunday night. Hence, he had taken the views of the Solicitor-General, Mr Kirit Rawal, who told him that the sell-off could be undertaken as the two oil PSUs after nationalisation came under the purview of the Companies Act which provided for expansion and contraction of equity.

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