New Delhi: The Central Bureau of Investigation has filed a closure report in the case concerning the 2002 disinvestment of Hindustan Zinc Limited, which took place under the former NDA administration led by Atal Bihari Vajpayee, stating that the accusations outlined in the initial FIR could not be substantiated during the probe. A special court will now determine whether to accept the agency's findings or direct a further inquiry after reviewing submissions.
The investigative agency initially initiated a preliminary inquiry in 2013 regarding the sale of the mini-ratna public sector enterprise to a private mining major. That preliminary probe was concluded four years later amid disagreements among senior CBI officials, prosecutors, and the investigating officer concerning whether the file should be closed or a formal criminal case should be registered.
In 2022, then Chief Justice D Y Chandrachud directed the CBI to register a regular case while presiding over a public interest litigation filed in 2014 that challenged the disinvestment process and alleged irregularities. Following that directive, the agency registered an FIR on April 28, 2022. Officials noted that the subsequent investigation ultimately determined the facts did not demonstrate the commission of any cognisable offence.
During the 2022 proceedings, Justice Chandrachud had highlighted internal disagreements within the agency recorded in past files, concluding there was sufficient material to order a full-fledged investigation into the Union government's 26 percent disinvestment of Hindustan Zinc. The Supreme Court had pointed to expert opinions obtained during the preliminary inquiry indicating that asset valuations were allegedly on the lower side and omitted relevant mining properties.
The apex court had also drawn attention to issues surrounding the appointment of BNP Paribas as a global advisor in January 2002, noting that investigators had difficulty tracing representatives of the France-based institution. Additional concerns raised in earlier court observations included allegations that valuers failed to adequately account for mineral reserves, corporate goodwill, technical expertise, advance income taxes, and physical assets.
With the submission of the closure report, the proceedings have returned to the special court, which holds the responsibility of deciding whether to approve the agency's conclusion or mandate additional investigation into the historical stake sale.