New Delhi, Mar 22: Telecom Minister Kapil Sibal has triggered a fresh controversy ordering a probe into the disinvestment of erstwhile VSNL during NDA regime in favour of Tatas but the then telecom minister Arun Shourie hit back accusing Sibal of twisting facts.
"It has come to my notice that the disinvestment of Videsh Sanchar Nigam Limited (VSNL) in 2002 does not seem to be fair and transparent.
"Prima facie the way issue of demerger of 773.13 acres of surplus land of VSNL was handled in 2002 and thereafter, not only the interests of investors but also the interests of the government seems to have been adversely affected," Sibal is understood to have said in a note to Telecom Secretary R Chandrashekhar.
The official was asked to constitute a high level committee under Additional Secretary S R Rao to examine the issue in detail and to submit its report by this month end.
Sibal is understood to have expressed concern over the inordinate delay in the hiving off/demerger of the government's surplus land being "enjoyed" by Tatas without paying a single rupee.
Accusing Sibal of providing perverted facts, Shourie said the government was already sinking under a cascade of corruption allegations and the minister was only adding to its problems.
He dismissed allegations of any wrongdoing and said he was prepared for any probe into the disinvestment of VSNL.
He said if there was any delay in the demerger of the land and if a probe has to be ordered it should be against P Chidambaram and Pranab Mukherjee, the past and present Finance Ministers in the UPA government in last seven years.
Shourie defended the disinvestment saying stringent conditions were laid down that prohibited the sale of surplus land by winning bidders.
"There are such stringent clauses that the person who wins the bid on VSNL, we have provided, shall not have any right on the land at all," Shourie said.
He added that transfer or sale of the land cannot be done without a special resolution.
"Shareholders agreements and and those clauses are right here. It prohibits the winning bidder, in this case the Tatas, to do anything with the land," he said.
Tata Group company Panatone Finvest Ltd had acquired a controlling stake in Videsh Sanchar Nigam Ltd (VSNL) on February 13, 2002, for Rs 1,439 crore as part of the disinvestment programme of the then NDA government.
However, at the time of disinvestment, surplus land of 773.13 acres was separated from the disinvestment bids and was to be disposed of as per the Share Holding Agreement (SHA) and Share Purchase Agreement (SPA).
Questioning the role of the UPA government, Shourie said, "The Tatas said they have been writing to the government and the government has not been able to make up its mind, that is for this government to answer. What has it been doing for six years?"
The UPA government has invited bids to hire consultants to ascertain the value of the 773.13 acres of VSNL surplus land and also initiate the process to sell it.
Tata Communications in a statement said, "We welcome any government process that hopefully will expedite the demerger of surplus land, which we have repeatedly requested in the best interests of the company and its shareholders.
"We categorically deny that Tata Communications or the Tata Group has benefited or seeks to derive benefit from the surplus land," it added. PTI
