New Delhi: The Supreme Court on Tuesday held that the disinvestment policy of the Union Government, particularly its decision to sell six hotels of the India Tourism Development Corporation (ITDC), could not be interfered through judicial review.

A Bench of Justices A.R. Lakshmanan and A.K. Mathur, thereby upheld the outright sale of five star hotel Agra Ashok to a private party. The sale was effected pursuant to a policy decision of the NDA Government to sell six of the 33 hotels run by the ITDA and to give long term lease for two hotels. While one sale was effected, the disinvestment in respect of other hotels is in an advanced stage.

The All-India ITDC Workers' Union and others challenging the sale of Hotel Agra Ashok filed a batch of petitions in the Delhi and Allahabad High Courts. Dismissing all the writ petitions, the Bench said "the Disinvestment Commission in its report recommended that ITDA falls in the non-core category and hence disinvestment can go up to 74 per cent. The recommendation was accepted by the Government at the level of Cabinet Committee on Disinvestment and a decision was taken by inter-Ministerial Group and at the level of the Cabinet Committee on Disinvestment to divest each property individually rather than altogether or in groups."

Writing the judgment, Mr. Justice Lakshmanan said, "In the present case, the petitioners are not Government servants and are merely employees of a public sector undertaking.

This apart, the service conditions of the petitioners are being protected under the new management on the disinvestment of the hotel and the fact that other hotels are also in an advanced stage of disinvestment."

The Bench said that the decision of the Government of India to divest the property was a policy decision, which was not in any manner contrary to law of the land. A similar policy decision to disinvest 51 per cent of the share holding in the Bharat Aluminium Company was challenged and this court had held that the sale of shares was legal.

The Bench said, "It is pertinent to notice that the ITDA has not participated in the disinvestment process as the same was carried [out] by the Ministry of Disinvestment, Government of India. The safeguards regarding the service conditions of the employees have been duly provided in the transfer document, i.e de-merger scheme and share purchase agreement."

The Bench said that "in the instant case, the Government has acted on the advice of experts before taking a decision to disinvest its shares in ITDA Limited.

Even thereafter, in a thorough, fair and transparent process, the Government has ensured that it has got the best price for its shares. It is also pertinent to notice that the Government has not received any other higher offer. In the case of BALCO, as well as in the present case, the Government of India has ensured that the interest of the workmen are fully protected."

There is absolutely no merit or substance in the contentions of the petitioners, the Bench said and held that the policy decision to transfer the hotel to M/s Mohan Singh and Yamuna View Private Limited could not be assailed at the instance of employees.

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