Govt approves mechanism for sale of enemy shares worth Rs3,000 crore
12 November 2018
The centre has approved a mechanism for sale of enemy shares worth Rs3,000 crore, under which it will transfer a total of 6,50,75,877 shares in 996 companies of 20,323 shareholders that are under the custody of Custodian of Enemy Property of India (CEPI).
The union cabinet chaired by Prime Minister Narendra Modi has approved the mechanism for sale of shares, which at current price is estimated to be worth around Rs3,000 crore.
The decision will lead to monetisation of movable enemy property lying dormant for decades and the proceeds will be used for development and social welfare programmes, an official statement said.
Sale proceeds are to be deposited as disinvestment proceeds in the government account maintained by the ministry of finance. The Department of Investment and Public Asset Management has been authorised to sell the shares, it added.
Total shares, known as "enemy shares numbering 6,50,75,877 worth Rs 3,000 crore, are lying unutilised because enemy property act includes movable and immovable property.
Of these 996 companies, 588 are functional/ active companies, 139 of these are listed with remaining being unlisted.
The process for selling these shares is to be approved by the Alternative Mechanism (AM) under the chairmanship of the finance minister and comprising minister of road transport and highway and the home minister.
According to Enemy Property Act, 1968, "Enemy property" refers to any property belonging to, held or managed on behalf of an enemy, an enemy subject or an enemy firm.