Fresh twist to Maha Scooters disinvestment

BJP functionary wants state to pick majority stake

The controversy over the proposed divestment of the Maharashtra government's 27 per cent stake in Maharashtra Scooters Ltd (MSL) has take a twist with the state BJP demanding acquisition of a majority stake in the company by the government.

Maharashtra BJP vice president and MLA Mangal Prabhat Lodha has demanded that the arbitration proceeding, which was set in motion in order to evaluate the value of the government's stake, should be suspended.

In a letter to the chief minister Sushil Kumar Shinde, Lodha said the government should come out with an offer to buy out the private promoter's 24 per cent stake.

With the BJP entering the scene, the MSL saga has been given political colour. Experts said the BJP demand that the government to buy out the private promoter's stake appeared to be a gimmick.

" It seems that BJP opposed the divestment as Rahul Bajaj, chairman of Bajaj Auto, wants to buy out the government, " they added. Bajaj is also chairman MSL. Bajaj Auto holds 24 per cent stake in MSL while the Maharashtra government, through Western Maharashtra Development Corporation, holds 27 per cent holding.

Lodha, however, argued in his letter that the open offer, it made, will be ground breaking step in establishing the confidence of the small shareholders, who were denied equitable rights in the company.

Dinesh Trivedi, member of the Rajya Sabha and finance committee of Parliament, had urged Sebi and the finance minister to unlock value of the MSL stock so that the government could get maximum return and small shareholders would not be sacrificed to "help out a big investor."

The public holding in the company stood at 49 per cent.

It is not known whether the letters of Trivedi elicited any response.

Earlier, a Kolkata-based jute industrialist had offered to buy out the government's stake for Rs 200 a share. Kankaria's quote was much higher than the rate offered by Bajaj Auto.