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Delhi HC junks Subramanian Swamy's plea against divestment process of Air India

The government inked a share purchase agreement with Tata Sons for the sale of Air India for  ₹18,000 crore in October 2021, and Tata Group emerged as the winning bidder. (REUTERS)Premium
The government inked a share purchase agreement with Tata Sons for the sale of Air India for 18,000 crore in October 2021, and Tata Group emerged as the winning bidder. (REUTERS)

  • In a social media post, Swamy said that “The Delhi HC dismisses my writ petition on Air India, but a reasoned order is being uploaded. After reading that we shall decide on going to Supreme Court(SC)”

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MUMBAI : The Delhi High Court on Thursday dismissed a public interest litigation (PIL), filed by Rajya Sabha MP Subramanian Swamy, challenging the divestment process of Air India. A detailed order is expected later in the day.

In a social media post, Swamy said: “The Delhi HC dismisses my writ petition on Air India, but a reasoned order is being uploaded. After reading that we shall decide on going to Supreme Court(SC)."

Earlier on Monday, the Delhi High Court had reserved its order in the matter.

The government inked a share purchase agreement with Tata Sons for the sale of Air India for 18,000 crore in October 2021, and Tata Group emerged as the winning bidder.

Based on the PIL, Swamy alleged that the bid process was arbitrary, corrupt, against the public interest, and rigged in the Tata group's favour.

He also stated that that the second bidder was a consortium led by the owner of SpiceJet. However, because the company is facing insolvency proceedings in the Madras High Court, it was not eligible to offer and so there was just one bidder.

Earlier on 4 Jan, while arguing, Tushar Mehta who was representing the Centre said that the disinvestment was a policy choice made in light of Air India's massive losses.

According to Mehta, the government decided in 2017 that regardless of when the disinvestment occurs, the government will cover the losses up to that point.

Following which the bidder was to bear the losses. So the decision was not taken to help any particular party, he added.

SpiceJet was never a part of the consortium and therefore, the proceedings against it are irrelevant to the divestment process, he clarified.

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