The Government has issued a clarification after certain sections of the media brought out reports questioning the legislative developments in year 2003 concerning it’s shareholding in IDBI. The Finance Ministry today said that an amendment seeking to restrict the dilution of government’s stake in IDBI Bank was rejected and did not form part of the enacted legislation during the discussions on the Union Budget, 2003, and the parliamentary debate on the IDBI (Repeal) Act, 2003.

 

The Ministry said that the matter was subsequently examined by the Delhi High Court. It further stated that the Judgment dated on 17th December 2018 clarifies beyond doubt that the doctrine of promissory estoppel cannot be invoked based on statements made during parliamentary debates to restrict the Government’s power to dilute its shareholding in the IDBI Bank. The Ministry said that the Court further held that the enacted legislation contained no prohibition against reducing the Government’s stake in IDBI Bank Limited.

 

The Ministry said that the legislative history of the IDBI (Repeal) Act, 2003, the judicial pronouncement of the Delhi High Court and successive Union Budget Speeches collectively demonstrate the evolution of the Government’s policy towards the strategic disinvestment of IDBI Bank.