The Foreign Investment Promotion Board (FIPB) of the finance ministry has written to the Reserve Bank of India and the ministry of communications and IT for their comments on the alleged violation of FEMA and licensing conditions, if any, by the Hong Kong-based Hutchison Telecom International Ltd. in the recent sale of Hutch stake in Hutch-Essar Ltd to Vodafone.
In the letter signed by Mr D.K.Singh, director, FIPB also asked the RBI and the communications ministry to refer to the declaration made by HTIL and Vodafone before the Securities and Exchange Commission in the US on the nature of control.
According to Ajoy Chakraborty, MP, Hutchison Telecom, apart from having around 52 per cent stake in Hutchison Essar, also has control of an additional 15 per cent stake by way of controlling interests in two Indian companies held by Analjit Singh of Max India and Asim Ghosh, CEO of Hutchison Essar, namely Indusind Telecom Network Pvt Ltd., together with its subsidiaries.
This makes HTIL’s shareholding effectively 67 per cent in HEL. The foreign entities of Essar group hold 22 per cent thus taking the aggregate to 89 per cent which is beyond the permitted sectoral cap of 74 per cent, Mr Chakraborty said.
FIPB had earlier also written to Hutchison Essar asking for clarification as to "which entity has the beneficial ownership of stakes held in Hutchison-Essar Ltd. by the entities of Mr Asim Ghosh and Mr Analjit Singh.
Courtesy : Asianage.com
In the letter signed by Mr D.K.Singh, director, FIPB also asked the RBI and the communications ministry to refer to the declaration made by HTIL and Vodafone before the Securities and Exchange Commission in the US on the nature of control.
According to Ajoy Chakraborty, MP, Hutchison Telecom, apart from having around 52 per cent stake in Hutchison Essar, also has control of an additional 15 per cent stake by way of controlling interests in two Indian companies held by Analjit Singh of Max India and Asim Ghosh, CEO of Hutchison Essar, namely Indusind Telecom Network Pvt Ltd., together with its subsidiaries.
This makes HTIL’s shareholding effectively 67 per cent in HEL. The foreign entities of Essar group hold 22 per cent thus taking the aggregate to 89 per cent which is beyond the permitted sectoral cap of 74 per cent, Mr Chakraborty said.
FIPB had earlier also written to Hutchison Essar asking for clarification as to "which entity has the beneficial ownership of stakes held in Hutchison-Essar Ltd. by the entities of Mr Asim Ghosh and Mr Analjit Singh.
Courtesy : Asianage.com