Friday, September 1 2006 10:47 Hrs (IST) - World Time -

New Delhi: In a move that could aggravate the controversy over sale of residual equity in alumininum giant BALCO, the government today decided to return the cheque for Rs 1098 crore to Sterlite Industries and reassess its value in the light of criticism by the Commtroller and Auditor General.

The Cabinet Committee on Economic Affairs decided to set up a Committee of Secretaries to go into the issue and take due diligence of the CAG report on the price and valuation while negotiating on sale of the remaining equity, Information and Broadcasting Minister P R Das Munshi told reporters.

The decision follows a direction by the Delhi High Court earlier this month to the Centre to negotiate with Sterlite on its claim for 49 per cent shares in the erstwhile PSU while granting four weeks to settle the matter.

"A Committee of Secretaries (CoS) under Law Secretary and comprising of Disinvestment Secretary and Mines Secretary and to be overlooked by the Cabinet Secretary will go into the issue," Dasmunsi said adding that it was decided to return the cheque of Rs 1098 crore sent by Sterlite to the Finance Ministry in March.

Criticising the previous NDA Government on disinvestment during 1999-2002, CAG had said in its latest report that in case of four PSUs, including BALCO efforts were not adequate to get the title deeds to the land and buildings and this impacted the 'valuation of the properties adversely.'