The Supreme Court on Tuesday said the Centre could not privatise oil PSUs -- HPCL and BPCL -- without prior approval from Parliament.
Following are the highlights of the judgement:
Government restrained from proceeding any further on the privatisiation of HPCL and BPCL
Privatisation of HPCL and BPCL without prior approval from Parliament 'not permissible at all.'
Balco judgement not applicable as the aluminium company was not created by an Act of Parliament like the public sector oil companies.
The government should approach Parliament for amending the parliamentary laws to permit divestment.
Character of oil PSUs as government companies provided in the statute cannot be changed by an executive decision.
If the government was permitted to divest its stake in the PSUs below 51 per cent making them ordinary companies, it would have been provided for in the statute.
If divestment takes place and the PSUs cease to be Government companies, the parliamentary laws providing that they should be government companies 'will be a fallacy.'