RBI lifts forex ban on Hero Honda, Pepsi and LG Electronics

Mumbai: The Reserve Bank of India (RBI) has withdrawn its directive issued to authorised dealers in January this year, prohibiting them from releasing foreign exchange to Pepsi Foods Ltd, Hero Honda Motors Ltd and LG Electronics India Pvt Ltd, in connection with the World Cup Cricket event without its prior clearance.

The apex bank has said, the withdrawal of the ban is in view of the disposal of a writ petition by the Delhi High Court and authorised dealers are now free to dispose of pending applications relating to the World Cup event, subject to usual conditions.

According to an RBI circular, the Delhi High Court, while disposing off the petition has observed, "Considering the submissions made at the bar, this Court is of the opinion that essentially a writ petition was filed to ensure that the Indian Cricket Team is able to play and it was observed too that it was in public interest. Once they were permitted to participate in the tournament, the petition must be disposed of having become infructuous. So far as the other prayers are concerned, matter is in the realm of contract and it is between the parties individually for which these petitioners are not concerned and therefore, we do not find any reason to entertain the petition."