Responding to the reported offer made by the Chhattisgarh government to buy Balco at a price of Rs 552 crore, disinvestment minister Arun Shourie said, "No such offer has been made formally or to the court.

In any case, Sterlite cannot sell its equity as there is a three-year lock-in period."

Speaking to The Financial Express, the minister said, "If Sterlite sells its equity, it will be heavily penalised as per the shareholders' agreement and the share purchase agreement."The Rs 552-crore offer came up during the arguments in the Supreme Court. However, Mr Shourie pointed out, no formal offer was made, and the court "did not take cognisance of the offer".

When Mr Sibal made the offer of Rs 552 crore, Attorney General Soli Sorabjee said sometime back the state government was making a valuation of Rs 1,500 crore and asked what happened to that.

Mr Sibal said the Centre was resorting to litigation on behalf of a private party and that the deal did not appear to be a transparent one.

The attorney general said, "All these things are nice to be said outside the court." He challenged the state government to make these allegations on oath so that necessary consequences could follow.

In pursuance of the order of the apex court on March 7, the Chattisgarh counsel and Congress Rajya Sabha member Kapil Sibal said that full protection would be provided to the workers and the management inside and outside of the Balco plant at Korba. He added that there has not been any disruption of supply of water, electricity or food to the plant and the township.

Mr Sibal submitted before the court that the workers and management have not been prevented from willingly going to work at the plant. The state government will take every action to maintain law and order, he said.

A division bench comprising Justice BN Kirpal and Justice Ruma Pal, after the undertakings given by the Chattisgarh government, vacated its interim order of March 7, except for the order pertaining to land acquisition methods.The court adjourned the hearing of the transfer petition to April 9.

The Supreme Court had on March 7 restrained the Chattisgarh government from disrupting supply of water, electricity and food to the Balco plant at Korba or the township while directing it to provide adequate security to workers and the new management.

This followed an urgent application moved by the Central government amidst fears that state chief minister Ajit Jogi had declared moral support to the agitating workers who were disrupting work at the plant.