GOVT. CIRCULAR ON NON-INTERFERENCE IN AFFAIRS OF PSUs

We cannot expect the Central Government to divest itself of its
powers under Sec 48 of LIC Act-more so because LIC is 100%
owned by the Government of India as the sole shareholder, but
if the spirit of the circular is followed, we can expect the powers
to be used constructively and prudently.

But it has to be seen how the guidelines are put into practice.
Nevertheless it is worth a patient 

wait and watch.

Kind regards.

C H Mahadevan

RK VISWANATHAN'S LETTER

GOI's circular about it's noninterference in the working of PSUs/Financial institutions/Insurance cos is most welcome and especially for us. However we are inclined to know an answer for the following questions which is agitating our mind and of late been a focal point in our on going litigation :Will GOI give a rethinking to SEC 48 of LIC ACT which says that the Corporation will be guided by the directions of GOI and it has the power to make rules. 

This has created a dent in the Corporation's autonomy.Will the LIC Board Resolution will hereafter becomes sacrosanct.

R.K.VISWANATHAN
(From MUSCAT)