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SC Refuses To Interfere In LIC IPO,To Hear Plea Against Dilution Of ‘Govt’s Shares’

The central government on Thursday opposed a batch of petitions filed in the top court against the LIC's IPO.

LIC building in New Delhi. (PTI Photo)

New Delhi: The Supreme Court on Thursday refused to interfere in the ongoing process of the initial public offering (IPO) of Life Insurance Corporation of India (LIC). However, the apex court agreed to hear the challenge to the dilution of the government’s shares and petitions against LIC’s IPO.

The Supreme Court issued notice to Centre on petitions challenging the constitutional validity of provisions of certain sections of Finance Act, 2021 and LIC Act 1956.

The decision was taken by a Bench of Justices DY Chandrachud, Surya Kant and PS Narasimha. The top court was hearing a batch of appeals and a fresh plea against verdicts of the Madras and Bombay High Courts which dismissed challenges to the decision of the Central government to trade 5 per cent of its shareholding in LIC through an IPO.

The petition sought to declare Sections 128 to 146 of the Finance Act, 2021 as ultra vires Article 110 of the Constitution of India or alternatively declare Section 5(9) of the LIC Act 1956 and Section 128 to 130 Section 132 to 146 of the Finance Act, 2021 as ultra vires Article 110 of the Constitution of India or alternatively declare section 140 of the Finance Act, 2021 as ultra vires Article 110 of the Constitution of India.

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