The Indian government is defending its decision to proceed with the strategic disinvestment of IDBI Bank and the dilution of its shareholding. It cites the IDBI (Repeal) Act, 2003, arguing that the law allows the government to reduce its ownership stake as part of divestment.
Multiple outlets report that the Finance Ministry also points to a recent Delhi High Court ruling supporting its interpretation. The ministry says that references in Budget speeches or legislative discussions do not override or alter the effect of existing law. In response to claims that the planned dilution is irregular, the government reiterates that the 2003 Act permits stake dilution and that its prior Budget announcements show a longstanding intention to divest from IDBI Bank and similar entities.
