Breaking: CBI Files Closure Report in 2002 Hindustan Zinc Disinvestment, Says Allegations Could Not Be Substantiated

The Central Bureau of Investigation has filed a closure report in the 2002 disinvestment of Hindustan Zinc Ltd under the then-NDA government led by Atal Bihari Vajpayee, with agency officials saying the allegations in the FIR "could not be substantiated" during the probe. A case spanning a decade The CBI first opened a preliminary inquiry in 2013 into the disinvestment of the "mini ratna" company in favour of a private mining major, closing it four years later amid sharp internal divisions among senior officials, prosecutors and the investigating officer over whether to close the matter or file an FIR. In 2022, then-Chief Justice D Y Chandrachud directed the agency to register a regular case while hearing a 2014 public interest litigation challenging the disinvestment; the FIR was registered on April 28, 2022. Justice Chandrachud had said there was "sufficient material for registration of a regular case." What the closure report says According to officials quoted in reports, the CBI's position is that "the allegations could not be substantiated" and that the facts "do not demonstrate the commission of any cognisable offence." The agency is now expected to place its submissions before a special court, which will decide whether to accept the closure report or order further inquiry. The case concerned the Union government's 26 per cent disinvestment of Hindustan Zinc in 2002. During the inquiry, the CBI alleged that valuers ignored assets including 150 million tonnes of ore reserves — an alleged Rs 80,000 crore valuation claim — and that ore reserves were valued at only Rs 748.88 crore against a claim of roughly Rs 39,000 crore after a 40 per cent extraction cost. Chartered engineers consulted in the preliminary inquiry had concluded the valuation was on the "lower side," excluding relevant mining properties. The Supreme Court had also flagged the appointment of BNP Paribas as "global advisor" on January 9, 2002; the CBI could not trace the France-based bank's officials during its inquiry. No individuals have been named as accused in the reported accounts, and the closure report represents the CBI's assessment of unproven allegations, not a final judicial finding. Sources: ThePrint (PTI): Allegations Not Substantiated: CBI Files Closure Report in 2002 Hindustan Zinc Disinvestment Rediff: Hindustan Zinc Disinvestment — CBI Files Closure Report Despite SC Directive