The Board for Industrial and Financial Reconstruction (BIFR) has cleared the disinvestmetn scheme for Jessop & Co. Ltd. Though it has added that the implementation of the scheme can be undertaken only after obtaining leave of the Calcutta High Court.
The government had identified Ruia Cotex as the prospective buyer in February 2002. Ruia Cotex would hold 72 per cent equity with the government having 26 per cent equity. Ruia Cotex had made a bid of Rs 18.18 crore. The government had cleared the disinvestment of the company in the beginning 2002.
Meanwhile the 1,500 employees of Jessop have filed a petition against the disinvestment in the Calcutta High Court in February.
The objection is that the company is a strategic industry where disinvestment should not be allowed.