M A I N   N E W S

Companies to be heard: Shourie
Decision unfortunate: Hindujas

New Delhi, July 7
A day after disqualification of the bids of Hindujas and Videocon for Indian Airlines and Air India privatisation, the Disinvestment Minister, Mr Arun Shourie, said they would be given an opportunity for hearing before final orders were passed.

“I announced yesterday the prima-facie implication of the guidelines for individual companies. There is an entire procedure to be gone through in that...they would be given an opportunity for hearing. The final orders would be given only after that,” Mr Shourie said.

The Minister said the tainted bidders would be informed about the prima-facie result of the guidelines on individual companies, and asked to explain their stand on the issue.

The government, last night, had prima-facie disqualified Hindujas for Air India and Indian Airlines bidding on security considerations in accordance with the newly-formed guidelines to keep tainted companies out of the privatisation process.

The guidelines had also disqualified Sterlite in race for Hindustan Zinc and Hindustan Copper and Videocon eyeing government’s stake in the VSNL and Indian Airlines.

When contacted the Disinvestment Secretary, Mr Pradeep Baijal, said the guidelines announced yesterday would be issued formally early next week, following which each case would be examined individually.

“It is only after this, that the notices would be served to the bidders,” he said.

Mr Baijal said the process of examining the cases would be taken up by the DoD soon and the Law Ministry would be consulted on the legal issues.

According to the prima-facie implication of the guidelines announced yesterday, BPL has been allowed to continue in the race for stake in the VSNL.

Videocon, BPL and Sterlite were recently indicted and barred from accessing the capital market by the Securities and Exchange Board of India (SEBI) on charges of share price manipulation.

As per the guidelines finalised by the government separately for advisors and bidders participating in privatisation process “in regard to methods relating to security and integrity of the country either charge-sheet by government agency or a conviction by the court of law for an offence committed by a bidder or a sister concern of the bidder would result in disqualification.”

LONDON: Meanwhile, the Hinduja Group on Saturday termed as “unfortunate and arbitrary” the Government of India’s decision banning them from bidding for a stake in Air India and Indian Airlines and said it would decide its next step after seeking legal advice.

The government’s decision to disqualify the Hinduja from bidding was “unfortunate and arbitrary, especially because the issue is being raised at this late stage when the disinvestment had already progressed and the shortlisting process had proceeded to the third stage”, a spokesman of the group said. PTI