HC extends stay on privatisation

  • 14/10/2008

  • Business Standard (New Delhi)

BS Reporter / Lucknow October 14, 2008, 0:30 IST The Allahabad High Court today extended the stay on privatisation of about 33 Uttar Pradesh Sugar Corporation mills till the next date of hearing on October 20. Hearing a Public Interest Litigation (PIL) filed by Rajeev Kumar Mishra of Maharajganj district, a division bench comprising Justices Ashok Bhushan and Vinit Saran adjourned the hearing to October 20 on the plea of the state government counsel. The court ordered that the third-party right shall not be created till the next date of hearing. The PIL had contended that the disinvestment move of the UP government was against several central and state laws. Meanwhile, Mishra also filed the amended petition today challenging the September 29, Ordinance by UP in respect of the sale of the equity shares of the sugar mills, which he claimed was meant to legalise the illegal sale. The petitioner contended that the privatisation move would finish off the sugarcane area in UP and affect farmers. In an earlier hearing on September 12, the court had struck down the name of Chief Minister Mayawati from the list of the respondents. The state government wants to privatise the sugar sector to bring about operational efficiency. Gammon India, Uflex and Chaddha group have submitted their financial bids for the mills, which were opened on September 30. Official sources told Business Standard that the state government had also put the privatisation process on the back burner following the fresh litigation