CEL privatisation put on hold after employees move court

PTI

New Delhi, January 12

The government has put on hold the privatisation of Central Electronics Ltd (CEL) after the employees union approached the court against the sale of the company to a little-known firm, a top official said on Wednesday.

Allegations of under-valuation in the Rs 210 crore highest bid made by the city-based Nandal Finance & Leasing are being examined, said Tuhin Kanta Pandey, Secretary in the Department of Investment and Public Asset Management, which is running the privatisation process.

The Letter of Intent (LoI) for sale of 100% government shareholding in CEL to Nandal Finance & Leasing has not been issued, as the allegations are being examined, Pandey said.

The government had in November approved the sale of CEL, under the Department of Scientific and Industrial Research, to Nandal Finance & Leasing for Rs 210 crore. The transaction was scheduled to be completed by March 2022. Following this, the CEL employee association approached the Delhi High Court against the privatisation, and Opposition Congress too alleged that the company is being undervalued. —