CCEA forms panel to study Balco call issue

The cabinet committee on economic affairs (CCEA) today decided to constitute a committee of secretaries (Cos) comprising secretaries of the department of legal affairs, the department of disinvestment and the ministry of mines for finalising the government's position on the call option notice given by Sterlite Industires to acquire the remaining 49% stake in Bharat Aluminium Company (Balco).

The committee will consider the legal issues as and when they arise on the issue. 

Sterlite had acquired 51% government stake in unlisted Balco in March 2001. It was entitled to acquire the rest but the matter was referred to the Attorney General by the government in 2006 after a dispute over valuation.

The Attorney General declared the call option as 'ultra-vires' of the Companies Act, 1956. Sterlite has challenged this in the Delhi High Court.