Clarification on Legislative Developments concerning Government’s shareholding in IDBI

The Ministry of Finance has clarified legislative developments concerning the government's shareholding in IDBI in response to media reports. The release notes that during the 2003 Union Budget and parliamentary debates on the IDBI (Repeal) Act, 2003, an amendment seeking to restrict the dilution of government stake was rejected and omitted from the enacted legislation. It highlights the Delhi High Court judgment in All India IDBI Officers’ Association v. Union of India & Others (2018), which held that statements made during parliamentary debates do not preclude the government from diluting its stake and that the doctrine of promissory estoppel is inapplicable. Furthermore, the release outlines the evolution of the government's strategic disinvestment policy as mentioned in successive Union Budget speeches from 2016-17 and 2021-22.