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New Delhi , Aug 4

THE Supreme Court on Monday issued notices to the Union Government and the Disinvestment Ministry on a petition challenging the decision to disinvest its stake in EMU coach manufacturing unit, Jessop & Co Ltd, in West Bengal, but refused to stay the ongoing process of its privatisation.

The notices were issued by a Bench comprising the Chief Justice, Mr V.N. Khare, and Mr Justice S.B. Sinha after hearing Mr Deepankar Gupta, counsel for petitioner, Jessop & Co Ltd staff, and Mr Maninder Singh, Government counsel.

At the outset, the Chief Justice observed that clear-cut guidelines have been laid down by the Court in its judgement on the disinvestment of Balco and asked the petitioner as to which statutory provision had been violated by the Government in its decision to disinvest in Jessop & Co. Mr Gupta submitted that railway transport has been categorised by the Government as a strategic sector and contended that manufacturing of coaches also fell within that category.

However, the Bench said that the manufacture of coaches would not fall within the purview of Railway transport which would only include carrying of goods and passengers. The Government's proposal to revive the sick Jessop & Co Ltd through disinvestment was approved by the Board for Industrial and Financial Reconstruction (BIFR).

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