New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has approved a mechanism for sale of enemy shares which at the current price is estimated at around Rs 3,000 crore.
A total number of 6,50,75,877 shares in 996 companies of 20,323 shareholders are under the custody of Custodian of Enemy Property of India (CEPI).
The decision, taken by the Union Cabinet, 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 Finance Minister and comprising Minister of Road Transport and Highway and 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.