Trouble for Baijal for ‘ irregularities’
Fresh trouble seems to be brewing for former disinvestment secretary Pradeep Baijal, with the CBI probing his role in the alleged irregularities in the disinvestment of the state- owned Hindustan Zinc Limited ( HZL— Udaipur) during his stint in the ministry. The agency believes that the loss caused to the exchequer due to the alleged irregularities in the HZL disinvestment might be around ` 60,000 crore. The agency has already booked Mr Baijal for the alleged irregularities in the disinvestment of Laxmi Vilas Palace Hotel, Udaipur during NDA regime.
Sources said initial probe by the agency has revealed that recommendations of the ‘ Disinvestment Commission’ were ignored while initiating the disinvestment process of the central public sector undertaking. “The commission in its 6th report submitted in December 1997 had recommended that a suitable strategic partner may be offered upto 25 per cent of the equity stake in the company along with appropriate role in the management of HZL. But the unknown public servants on June 16, 2000 decided to disinvest 26 per cent of equity of HZL through strategic sale, which was later approved on August 29, 2000,” sources said. The CBI had registered a preliminary enquiry ( PE) in November 2013 to probe the alleged irregularities pertaining to HZL disinvestment.
Investigations further revealed that there were about 150 million tons of ore reserves in different mines of HZL, costing about ` 80,000 crore, sources said. “As per balance sheet of HZL, the PSU had invested ` 83 crore in a gas power project in a southern state. Total value of the HZL assets was around ` 20,000. A loss of approximately ` 60,000 crore was caused to the government exchequer by the disinvestment of HZL,” sources said. “The agency has completed its investigations into the PE and now the matter is being examined by its legal experts,” sources said.