A petition has been filed before the Delhi High Court seeking a court-monitored or Central Bureau of Investigation (CBI) probe into the proposed disinvestment of Ferro Scrap Nigam Limited (FSNL), a steel public sector undertaking (PSU), by which the company and its full management control is sought to be transferred to Japan-based Konoike Transport Co.

The government had recently approved the disinvestment of FSNL by accepting Konoike's ₹320 crore bid for taking over the Chhattisgarh-based mining and metals company with full management control.

The plea moved by Rourkela Mazdoor Sabha has alleged that the Union government's disinvestment process, which resulted in the selection of Konoike as the strategic buyer was fundamentally flawed.

As per the plea, FSNL was severely undervalued at ₹320 crores whereas its fair value is estimated to be around ₹950–₹1000 crores. Thus, the disinvestment is against established policies and precedents, it has been contended.

The petitioners have further alleged that the process not only lacked transparency but also failed to take into account the interests of FSNL employees.

While a circular was issued to protect the workforce of Rashtriya Ispat Nigam Limited (RINL), another steel PSU under a merger scheme, no such provision has been made for FSNL workers.

Moreover, the petition has also claimed that the selection of Konoike, a logistics-based company with no experience in managing steel companies in India, as the strategic buyer was questionable. There was no independent study or analysis to justify the necessity of FSNL's disinvestment.

The petitioner has argued that without an investigation, there is a risk of an unjust sale of national assets, violating the constitutional rights of workers under Articles 14, 19 and 21 of the Constitution.

The plea has been filed through advocates Satya Sabharwal and Palak Bishnoi of Sabharwal and Bishnoi Law office.