Dilution of Sec 111A will weaken govt's case: Mines min

The government is defending three cases regarding call options on Balco and Hindustan Zinc Limited (HZL). According to sources in the mines ministry, any dilution of Section 111A of the Companies Act will weaken the government's case, reports CNBC-TV18's Anshu Sharma.

Also Read: Govt allots 14 coal blocks to power PSUs; 4 to NTPC
In response to the same draft, the CCEA Note on Put and Call Options was floated by the finance ministry. Sources told CNBC-TV18 that the mines ministry has said that if any changes were made to Section 111A of the Companies Act, whether by the way of amendment to notifications of Sebi by the finance ministry or any other government body, it will be used against the government to defend cases based on this clause.
The mines ministry is fighting three legal cases which include Balco and HZL, where the government's stand on Call options in the shareholding agreement signed between the government and the strategic partner is in violation of Section 111A of the Companies Act and is hence invalid and unenforceable.