While the department of public enterprises upheld ONGC chief Subir Raha's stand that the number of government directors cannot be raised to four, the law ministry firmly endorsed his view that appointment of V K Sibal, director general of the directorate of Hydrocarbons, was in conflict with Sibal's role as the regulator for the sector.
"We had an opinion from the ministry of law, which my officers should have asked for, six-months ago. I am really disappointed that this obvious question was not asked by them," Aiyar told a business TV channel.
According to the transcript of the interview, made available by CNBC, Aiyar said he had neither made the proposal for appointment of additional directors on ONGC board nor had he wanted Sibal on the company's board.
"I didn't make the proposal, I am happy to accept technical advice," he said, adding that upon learning about the stand-off between Raha and the ministry he had ordered that DPE and law ministry opinion be taken and "not to do guesswork".
"And, as a result of my insistence that we get these two opinions, we have just received the (law ministry opinion) today and the DPE opinion came in a couple of days ago, that we should not have more government directors on Navratna board than anywhere else and that the DGH should not be appointed," he said.
"I think my ministry, my officials should have gone to the ministry of law, to the DPE much earlier and if they were running into difficulties. I think bureaucrats take a little while to realise that there are ministers, who wish to be more than decorative," Aiyar said.
Meanwhile, at ONGC's annual general meeting, Raha made a reference to interference by the ministry officials in the working of the company.
"A listed company, even in the public sector, remains a listed company, not a department. A public sector company is 'owned', in entirety or in majority, by the people and not by any individual in a given office for a given tenure... Administrative instructions cannot override the Law," he said.
"Companies are not departments... companies are governed by the Companies Act, departments are administered under executive rules and procedures," he said.
The ONGC chairman and managing director said listed companies were legally liable for compliance of the listing agreement and companies were governed by the Companies Act.
"It is important to remember these statements because far too often, the distinction between a company and a department gets diffused in the public sector domain.
"If the state refused or withdraws protection, the choice is either to dissolve the company and carry out the purpose through a department, or let the company run as an enterprise", he said.
Raha, however, refused to elaborate on this statement at the AGM. "I have said whatever I wanted to. I have nothing more to say."
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