Privatisation is an exclusive subject of governmental policy in several countries. The reasons for privatisations may mainly be political and economical; nevertheless, it raises many legal questions. Apart from the constitutionality and legality of the decision on privatisation there are public law issues in administrative law that usually crop up with privatisation decisions. The principle aim of this article is to examine the applicability of administrative law principles in privatisation. In the initial part, the article examines the phenomenon, various approaches towards privatisation, its rationale and limitations. Subsequently, the article analyses different types of privatisation. It also portrays various interfaces between privatisation and administrative law with special reference to India. In the last part, the article is summed up with an appropriate conclusion and suggestions.