SC refuses to stay share allotment of LIC IPO, issues notice to UOI
Supreme Court on Thursday refused to grant stay after hearing a batch of petitions challenging the decision of the Central government to trade 5 per cent of its shareholding in Life Insurance Corporation (LIC) through an Initial Public Offering (IPO).
Statesman News Service | New Delhi | May 12, 2022 5:48 pm
LIC IPO. (Photo: IANS)
Supreme Court on Thursday refused to grant stay after hearing a batch of petitions challenging the decision of the Central government to trade 5 per cent of its shareholding in Life Insurance Corporation (LIC) through an Initial Public Offering (IPO).
A bench of the Supreme Court, headed by Justice Dr Dhananjaya Yashwant Chandrachud, and also comprising Justices Surya Kant and PS Narasimha issued notice to the Central government in the case but declined to pass any stay order.
“We cannot grant any interim relief now. In matters of IPO, court will be reluctant in granting interim relief. It is about investments,” the bench said.
The Court said that the issue raised is regarding enactment of law as a money bill and the same is already pending before the apex court. Hence, it said that the case will be tagged along with the pending matter.
“Issue regarding money bill has been referred to the Constitution bench and it has to go to 7 now. We will issue notice and tag it with that matter,” said Justice Chandrachud, and refused to pass any interim relief to the batch of the petitioners.
It is to be noted that the LIC IPO opened on May 4 in a big way.
The batch of petitions filed by many LIC policyholders, in the Supreme Court stated that the amendments being challenged effectively reduce the share of LIC’s surplus which the petitioner is legally entitled to, causing losses to her and other participating policyholders to the tune of Rs 4,14,919 crore.
The petitioners said amendments to LIC Act, seriously jeopardising interestx of participating policy holders, could not have been carried out through a Money Bill. The Centre said the Money Bill was passed 15 months back on March 28, 2021, and the petitioners can’t come to court so late.
The court refused to undertake an “exhaustive examination” of the prayers challenging the insertion of ‘secular’ and ‘socialist’ in the preamble of the constitution by the forty-second amendment to the constitution in 1976.
Expressing dissatisfaction with the steps taken to control and combat toxic air pollution in the national capital, the Supreme Court on Friday directed the Delhi government and police to immediately set up checkpoints at all 113 entry points to the city to monitor the entry of trucks carrying only essential supplies.
The Supreme Court on Friday sought the response from the Anjuman Intezamia Masjid Committee that manages the Gyanvapi mosque in Varanasi on a plea for a survey by the Archaeological Survey of India (ASI) of the sealed area of the mosque
