New Delhi, June 3: BJP today strongly criticised the decision of the Vsnl board to invest Rs 1,200 crore in Tata Tele-Services saying it was tantamount to defeating the very spirit of disinvestment of PSUs and demanded that the government explore necessary steps to prevent misuse of the disinvestment process in future. “The government is examining the legal aspects as the decision of the VSNL board may even strengthen hands of those who are opposed to economic reform process,” party spokesman Sunil Shastri told reporters.

He said that the experience in the case of VSNL was most disappointing, that too when such a bad precedence has been set up by a business house known for its ethics. In fact this may send wrong signal. People may start looking at disinvestment process as an opportunity to siphon off funds from PSUs. Shastri cautioned that if the practice setup by the Tatas was not checked through appropriate corrective steps, hereafter cash-starving business houses might try to acquire cash-rich PSUs, misusing disinvestment process.

“It is necessary that apex industry associations and experts build up moral pressure against such unfair practices so that economic reforms process could be carried on without any hindrance,” he added. Bureau Report