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TMI Blog2020 (12) TMI 1410X X X X Extracts X X X X X X X X Extracts X X X X ..... an an undertaking run by the Government of India, that is to say, it belongs to the Government of India. The vigilance control over IDBI Limited by the Central Vigilance Commission cannot be the guiding factor for exploring the answer to the issue which are primarily tasked to decide. On this writ petition, it is not required to decide whether exercise of vigilance control over IDBI Limited by the Central Vigilance Commission is legal and valid. Such a question can be dealt with in an appropriate proceeding, if the occasion therefor arises. Conclusion - The IDBI Limited is not a Government of India undertaking, and the petitioner is not entitled to the exception clause in the NEET 2020 Information Brochure. Petition dismissed. - Dipankar Datta, CJ G.S. Kulkarni, JJ. Shri Kiran Bapat along with Shri Pralhad Paranjape and Shri Manish Kelkar for the Petitioner. Shri Anil C. Singh, Additional Solicitor General along with Shri Rui Rodriques and Shri D.P. Singh for Respondent No. 1- U.O.I. Ms. P.H. Kantharia, Government Pleader with Ms. Jyoti Chavan, AGP for Respondent Nos. 2 and 3 - the State. Shri Rui Rodriques for Respondent No.4 - SCETC. ORAL JUDGMENT : 1. The question that emerges f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isition of stake in IDBI Limited by the Life Insurance Corporation of India (hereafter LICI , for short) to the extent of 51% of the share capital, and keeping in view the fact that LICI is wholly owned by the Government of India and also that the Government of India s holding in IDBI is 46.46%, the direct and indirect Government holding in IDBI is 97.46%; hence, the Central/State Government/departments/agencies/ institutions may continue to consider IDBI Limited for grant of Government business. 4. On the aforesaid date, i.e., November 25, 2020, Shri Rodriques, learned advocate representing the respondent no.4, i.e., Competent Authority Commissioner, State Common Entrance Cell, Government of Maharashtra, had brought to our notice a letter dated March 14, 2019 of the Reserve Bank of India (hereafter RBI , for short), whereby RBI categorized IDBI Limited as a Private Sector Bank and contended that IDBI Limited cannot be regarded as an undertaking of the Government of India. 5. In view of such letter, we required the assistance of Shri Anil Singh, learned Additional Solicitor General. He was requested to apprise us of the status of IDBI Limited in the light of the letters dated Decem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o way determines the status of the bank to which grant of government business has been permitted. In this regard, it is pertinent that as per RBI s circulars no.DGBA.GAD.No.218/42.01.001/2003- 04 and DGBA.GAD.No.220/42.01.001/2003-04, both dated 27.8.2003 (copies enclosed), certain Private Sector Banks (e.g. ICICI Bank Limited and Axis Bank Limited) were authorized for grant of government business to them. 7. Based on the above instructions, it is Shri Singh s categorical submission that the letter dated December 17, 2019 is in the nature of advisory which was required to be issued in view of a previous embargo that had been placed on grant of Government business to private sector banks like IDBI, ICICI Bank, Axis Bank, etc. and that the said advisory can, in no way, be regarded as decisive to determine the status of IDBI Limited. Responding to our query, Shri Singh submits that IDBI Limited cannot be regarded as a Government of India undertaking for the purpose of entitling the petitioner to avail of the exception clause in paragraph 4.8.1. 8. Upon hearing Shri Singh, we gave Shri Bapat an opportunity to respond. He once again relies on the letters dated December 31, 2007 and Dece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the shareholding pattern of LICI and the Government of India (51% + 46.46%), it is clear that IDBI Limited is a Government of India owned and controlled undertaking and the decision to deny the petitioner the benefit of the exception clause in paragraph 4.8.1 of the Information Brochure is grossly illegal, arbitrary and without jurisdiction. 13. Shri Bapat, accordingly, prays for a declaration that IDBI Limited be declared as an undertaking of the Government of India and consequent relief be granted to the petitioner by directing the respondent no.4 to allow the petitioner admission in the MBBS course upon extending to her the benefit of the exception clause in paragraph 4.8.1 of the Information Brochure. 14. We have heard the parties at length, perused the materials placed on record and considered the rival contentions. 15. Consequent to the enactment of the Industrial Development Bank of India Act, 1964 (hereafter the IDBI Act , for short) and issuance of notification in terms of Section 3 thereof, the Industrial Development Bank of India (hereafter the Development Bank , for short) was brought into existence as a body corporate with effect from June 20, 1964. Section 26 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Development Bank as a body corporate which, by operation of the said Act, would stand transferred to and vested in the Company to be formed and registered under the 1956 Act. The Development Bank, from a body corporate, by reason of the 2003 Act (which also repealed the IDBI Act) attained an identity of a Company governed by the 1956 Act. 19. Though undertaking is a word of large import, it has to be read and understood in the context where it occurs. In the present context, a Government of India undertaking would mean an undertaking run by the Government of India, that is to say, it belongs to the Government of India. We regret to record, it has not been so shown that IDBI Limited belongs to the Government of India and is run by it. The transition of the Development Bank from a body corporate to a Company (IDBI Limited) without deep and pervasive administrative, financial and functional control of the Government of India over such Company having been shown gives us little reason to hold that after the enactment of the 2003 Act, IDBI Limited could still be regarded as an undertaking of the Government of India. We place on record that Shri Bapat has not referred to any authority whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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