New Delhi: The Center wishes to launch new offers for the sale of shares in Central Electronics Ltd (CEL) after discussing the matter with the Ministry of Justice.
Quoting people familiar with the matter, HEY reported that following allegations of several failures and false information against the successful bidder, it was necessary to restart the divestment. However, the government will wait until July, when a case filed by the association of public sector employees on the matter is expected to be heard.
As for the divestiture of state-owned helicopter operator Pawan Hans put on hold due to allegations against the reputation of the successful bidder, the government plans to negotiate with other entities that had submitted bids.
“In the case of CEL, the Department of Justice is of the opinion to abandon the process and invite new offers,” said one of the people familiar with the daily financial development, mentioning that the Center had asked his opinion on both CEL and Pawan Hans. .
Last year, the Center gave the go-ahead for the sale of CEL to Nandal Leasing and Finance Ltd for Rs 210 crore, and the deal was expected to close in March.
The employees’ association, however, contacted the Delhi High Court, alleging that the two bidders for CEL were related entities and that there were discrepancies in the process.
Opposition parties raised the issue, after which the government decided to postpone the sale and seek a legal opinion on its future course of action.