Government Invites Bids To Sell ‘Enemy’ Shares In Spencer, Mohan Meakin, Bharat Nidhi And 81 Others

The Government of India has expressed its intention to sell shares of 84 companies that are being held by the Custodian of Enemy Property of India (CEPI) through a bidding process.

The decision comes as the government looks to dispose of the assets of individuals who migrated to Pakistan and China. The decision will lead to the monetization of movable enemy property lying dormant for decades. Sale proceeds from this may be used for development and social welfare programmes.

According to a notice by the Finance Ministry, the list of companies includes Spencer and Company Limited, Anand Projects Ltd, Bharat Nidhi Ltd, Delhi Flour Mills, Mohan Meakin, Peerless General Finance & Investment, East India Pharmaceutical Works Limited, the Bengal Dooars National Tea Limited, and Woodbriar Estate, among others. SBI Caps is the merchant banker and selling broker for the transaction.

According to public notice, the government has invited bids from Resident Indian individuals, NRIs, HUFs (in the name of the karta), companies, corporate bodies, scientific institutions, societies, trusts, family offices, and qualified institutional buyers. Interested buyers (IBs) can submit bids for shares till February. Bidders have been asked to submit their bids, indicating the number of shares of companies they intend to bid for and the bid price. Any price quoted less than the reserve price set by the government will be rejected. The reserve price will be kept confidential from prospective bidders. Shares will be allotted to the eligible bidders who have submitted a valid price bid on a price priority basis, subject to the approval of the Centre.
As many as 2,91,536 shares of 84 companies are held by the CEPI. In a public notice, the Department of Investment and Public Asset Management (DIPAM) said "GoI proposes to sell 2,91,536 shares of 84 companies".

The initiation of the selling process is based on a Cabinet decision taken in 2018. The decision took the definition of the enemy from an Act of 1968, which says "enemy" or "enemy subject" or "enemy firm" means a person or country who or which was an enemy, an enemy subject, or an enemy firm, as the case may be, under the Defence of India Act and Rules, but does not include a citizen of India. In the amendment of 2017, this was substituted by "including his legal heir or successor, whether or not a citizen of India or the citizen of a country that is not an enemy or the enemy... who has changed his nationality."

Last month, Union Minister of State for Home Ajay Kumar Mishra said in the parliament that shares worth over Rs 2,709 crore were sold by the government as part of its initiative to dispose of enemy properties in the country.