MSDE drives skill-led transformation across India's border villages (See 'Corp Brief') Nadda emphasizes 70% of NCD Risk Factors Are Lifestyle-Driven (See 'Corp Brief') Workshop on New Textile Schemes held in Bengaluru (See 'Corp Brief') IPR - Claim for injunction on the ground of breach of confidentiality cannot succeed if plaintiff fails to establish an enforceable confidentiality obligation and has himself publicly disclosed the relevant work: HC (See 'Legal Desk') Farmers need trust and simpler Systems, Not Just Credit: Chouhan (See 'Corp Brief') India's civilisational openness key to future leadership: William Dalrymple (See 'Corp Brief') A&C - Even if arbitration clause expressly names particular official as party-appointed arbitrator, such appointment cannot be sustained if that person is rendered ineligible u/s 12(5) read with Seventh Schedule: HC (See 'Legal Desk') NFRA Circular 2026- lessons to auditor on communication (See CORP EINSICHT) India-ROK Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics (See 'Corp Brief') Food Business Startup Enabler Programme 2.0 conducted (See 'Corp Brief') Policy Support, Startups and Industry participation accelerate Circular Economy Transition (See 'Corp Brief' CCI okays restructuring by Vishakha Renewables and merger with Vishakha Glass (See 'Corp Brief') Scindia highlights historic 16% revenue growth of Department of Posts (See 'Corp Brief') IPR - Scope & clarity of invention are to be ascertained not just from independent claim in isolation, but by reading it together with dependent claims and accompanying drawings: HC (See 'Legal Desk') Samriddh Gram Initiative of India Nominated for WSIS Prizes 2026 (See 'Corp Brief') DARPG to observe 18th Civil Services Day on April 21, 2026 (See 'Corp Brief') IPR - Amended claims that significantly alter original claims transitioning from composition to non-native pancreatic ß cell must be duly considered by Controller independently without being influenced from prior conclusions - YES: HC (See 'Legal Desk') States showcase Best Practices in Digital Health at NHA Chintan Shivir (See 'Corp Brief') PMLA - Cricket betting involves cheating, which constitutes predicate offence under Prevention of Money Laundering Act, 2002, when FIR is registered for scheduled offences such as Section 420 IPC: SAFEMA (See 'Legal Desk') Chouhan reviews Kharif preparedness (See 'Corp Brief') CAQM reviews enforcement actions across NCR (See 'Corp Brief') PMLA - If actual tainted property or proceeds of crime are not traceable or available, authorities are empowered to attach alternative attachable property or untainted property of person involved: SAFEMA (See 'Legal Desk') Corporate laws (Amendment) Bill 2026 - Proposals affecting auditors (See CORP EINSICHT)

Print

Closure of pharma PSUs - Cabinet approves amendment in norms for sale of land

Published: Jul 17, 2019

By TIOLCORPLAWS News Service

NEW DELHI, JULY 17, 2019: THE Union Cabinet has approved the following decisions:

  1. Modifying the earlier decision dated 28.12.2016 of sale of land of PSUs to government agencies and instead permitting the sale of land as per revised DPE's guidelines dated 14.06.2018; and
  2. Providing budgetary support as loan to the tune of Rs 330.35 cr for meeting the employees' liabilities (Unpaid salary - Rs. 158.35 cr. + VRS Rs.172.00 cr.) as per following break-up:

a. IDPL - Rs.     6.50cr.

b. RDPL- Rs.  43.70cr.

c. HAL   - Rs. 280.15 cr.

(iii) Constitution of a Committee of Ministers for taking all decisions pertaining to closure/ strategic sale of the four Public Sector Undertakings, including the sale of assets and clearance of outstanding liabilities.

Major Impact:

  1. Budgetary support of Rs 330.35 cr. would help in disbursing the unpaid salaries and providing support for VRS of employees of IDPL, RDPL and HAL. The decision would mitigate sufferings of more than 1000 employees of these PSUs; and
  2. Setting up of a Committee of Ministers would expedite in process of implementation of the earlier Cabinet decision dated 28.12.2016 for closure of IDPL and RDPL and strategic sale of HAL and BCPL.

Background:

Cabinet had decided on 28.12.2016 to sell surplus land of Hindustan Antibiotics Limited (HAL), Indian Drugs & Pharmaceuticals Limited (IDPL), Rajasthan Drugs and Pharmaceuticals Ltd. (RDPL) and Bengal Chemicals & Pharmaceuticals Ltd. (BCPL) through open competitive bidding to Government agencies and clear the outstanding liabilities from the sale proceeds. It was decided that after meeting the liabilities, IDPL and RDPL would be closed and HAL and BCPL put up for strategic sale. Department took earnest efforts for sale of surplus land, but could not find buyers, despite issuing tenders more than once. Meanwhile, the Department of Public Enterprises (DPE) has issued revised guidelines on 14.06.2018 in respect of disposal of land of the PSUs. As funds could not be generated through sale of surplus land, the employees in few of the PSUs (HAL and RDPL) could not be paid salaries and VRS scheme floated. As such, it was decided to dispose of the land as per revised DPE's guidelines and seek up-front budgetary support for meeting employees' liabilities.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.