At a seminar organised here by the Federation of Indian Chambers of Commerce & Industry, CESC Ltd vice-chairman Sanjeev Goenka urged the minister to stop the FIs from taking unilateral decisions.

Although Goenka did not name any company, he was obviously referring to the case of Modi Rubber Ltd, in which the FIs had decided to sell their combined stake of 44 per cent to the highest bidder.

In a guarded statement, the finance minister said his office does not interfere in the activities of the FIs. "Would you like the government to intervene in the commercial decision of the financial institutions?" he asked.

"Here, the question is of trust and the financial institutions should not do anything to destroy this trust. They should work on mutual understanding and transparency cannot be made a victim. If the FIs feel that they are getting a good deal by selling their stake, who am I to ask? What reply will I then give to the Parliament?" the minister asked.

Recently, Ficci and the Associated Chambers of Commerce (Assocham) had written to the finance minister to block the sale by the FIs.Later, talking to The Financial Express, the president elect of Ficci, GP Goenka, said the issue should be judged in the historical perspective.

Institutions free to decide on stake sale: Yashwant SinhaÎ"At one time, companies had to borrow heavily from the financial institutions, and these loans were later transformed into equity. In such a scenario, the FIs should not sell their stake without giving the promoter a chance to buy it," he said.

Goenka added: "If the promoter is cheating the investors and the company is not run properly we would not oppose such a move from the FIs. However, we feel that the matter is different."

Union finance minister Yashwant Sinha will visit every corner of the country in a bid to change the mindset of political parties, trade unions and the people so that the second-generation economic reforms succeed. Sinha said the meeting is his first roadshow outside the capital on generating support for the second generation reforms.