Govt terminates sale of CEL to Nandal Finance
The Hindu
In November, the government approved the highest price bid of ₹210 crore by the Delhi-based Nandal Finance and Leasing Pvt. Ltd. for the sale of 100% shareholding of the government in CEL.
The Union government has terminated the strategic sale of its 100% stake in Central Electronics Limited (CEL) announced last November, and disqualified the successful bidder Nandal Finance and Leasing Private Limited, based on recommendations of an empowered group of ministers handling disinvestment transactions.
While the winning bidder was selected following a "transparent, open and competitive bidding process" and "laid down procedure of strategic investment", and a press release issued about CEL's sale to Nandal Finance on November 29, 2021, the Finance ministry said "certain allegations were received against the bidder and the bidding process" subsequently.
"While keeping the Letter of Intent (LoI) on hold, Government examined these allegations and found merit only in one allegation regarding pendency of a proceeding in National Company Law Appellate Tribunal against the successful bidder that may result in disqualification of the bid under applicable provisions of Preliminary Information Memorandum (PIM) and Request for Proposal (RFP)," the Ministry said.
The Department of Investment and Public Asset Management (DIPAM) in the Finance Ministry said that the successful bidder was given a due opportunity to show cause on points of disqualification, following which the group of ministers decided to scrap the transaction altogether 'after careful consideration'.
In November, the government approved the highest price bid of ₹210 crore by the Delhi-based Nandal Finance and Leasing Pvt. Ltd. for the sale of 100% shareholding of the government in CEL.
However, in February, the government informed Rajya Sabha that the issuance of the Letter of Intent for the successful bidder was put on hold, pending examination of specific allegations regarding the bidder.
Incorporated in 1974, CEL is a pioneer in the field of solar photovoltaics. It has also developed axle counter systems being used in Railway signalling systems for the safe running of trains.
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