Pawan Hans sale on hold, bidder under lens

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New Delhi, May 16

The government has developed second thoughts about selling off Pawan Hans, a fortnight after the Cabinet Committee on Economic Affairs (CCEA) had approved its outright sale to a consortium of three companies.

“We are examining it legally. We haven’t issued a letter of award to the successful bidder,” said Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM).

The issue is that the largest stakeholder in the consortium has been sanctioned by the National Company Law Tribunal (NCLT) and it may not have fully met the eligibility criteria.

According to DIPAM guidelines, an entity will be disqualified if the company or its directors are facing any conviction by a court of law which casts a doubt on its ability to manage a public sector unit when it is privatised.

Almas Global Opportunity Fund, a majority stakeholder in that largest shareholder Star9Mobility, has come under the scanner as it was earlier prosecuted by the NCLT.

This is the second time this year that the government has had to re-examine its own decision. In January, the sale of Central Electronics Limited was put on hold after it was found that the winning bidder had cases pending against it in the NCLT.

The CCEA had on April 29 this year approved Star9 Mobility Private Limited’s bid to buy the government’s 51 per cent stake in Pawan Hans for Rs 211 crore.