The Bombay High Court on Thursday impleaded market regulator Securities and Exchange Board of India (SEBI), ITC, and the Union ministries of Finance and Agriculture in a public interest litigation (PIL) against investments by public insurance companies in tobacco firms.

The court also granted a request by farmers’ associations to be part of the PIL. It directed the parties to file their respective affidavits in response to the petition within six weeks.

The PIL was filed by Sumitra Pednekar, wife of former Maharashtra minister Satish Pednekar, who died of oral cancer in 2011. It questions the government’s contradictory policy on tobacco. She is supported by officials of the Tata Trust and Tata Memorial Hospital, in their individual capacity, as petitioners.

The PIL points out that while the government is committed to tackling problems related to tobacco consumption, insurance companies and SUUTI continue to invest in companies making tobacco products.

The five insurance companies – Life Insurance Corporation of India, New India Assurance Company, General Insurance Company, Oriental Insurance Company and National Insurance Company — along with SUUTI (Specified Undertaking of the Unit Trust of India) hold about 32 per cent in ITC, valued at ₹1.07 lakh crore, the petition said.

Senior counsels Venkatesh Dhond and Vineet Naik, along with Avishkar Manu Singhvi and lawyers from MZM Legal, the firm representing the petitioners, made the opening remarks as to why the petition held merit.

‘Not a direct investment’

In response, Ravi Kadam, Rafique Dada and Janak Dwarkadas, representing the respondents, argued against the PIL, stating that the investments were in the secondary market and not a direct investment in the operations of the company. Senior counsels Powaiyya and Iqbal Chaggla, representing farmers’ associations, noted that farmers in various States depend on tobacco as a livelihood, especially in drought-prone regions.

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