A parliamentary panel has rapped the government for bypassing Parliament in deciding to privatise oil refiners Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp saying the judiciary had to step in and remind the executive of the authority of the Parliament.

The Parliamentary Standing Committee on Petroleum, in its report tabled in Parliament on Tuesday, said the government ignored its unanimous view, which called for sanction of Parliament before going in for divestment in HPCL [ Get Quote ] and BPCL [ Get Quote ].

The Divestment Development: Complete Coverage

"This amounts to dilution of the Legislature, which forced Judiciary to step in and remind the Executive of the authority of the Parliament," it said.

The Supreme Court had asked the government to seek Parliamentary approval before privatising the two oil refiners, which were nationalised through an act of Parliament.

Noting that the government has again moved the Supreme Court for a review of its judgement, the Committee reiterated its earlier stand that "sanction of Parliament is mandatory before a decision to divest HPCL and BPCL is taken."

Favouring allowing other public sector oil firms to bid for HPCL, the report said the committee was also not convinced by the reply of the government that ownership of one PSU by another did not serve the purpose of divestment.