HTIL says deal is FDI-compliant
09 Mar 2007
New Delhi: Hutchison Telecom International has said that allegations by an Indian consumer group that the Hong Kong-based company held more stake in mobile firm Hutch-Essar than what was permitted under the FDI policy was not true.
Consumer group Telecom Watchdog had filed public interest litigation in the Delhi High Court alleging that HTIL was holding more equity than the 74 per cent FDI cap in Hutchison Essar through benami transactions.
HTIL said it believes Hutchison Essar is FDI compliant and the transaction will not affect such FDI compliant status.
Telecom Watchdog has claimed that foreign holding in Hutch-Essar was 89.03 per cent.
Max India Chairman, Analjit Singh who holds around 8.75 per cent stake while the Hutchison Essar MD, Asim Ghosh, with 6.25 per cent stake said that they are the sole owners of their stakes in HEL.
Telcom Watchdog has alleged that the equity held by the two individuals was being held on behalf of HTIL.