Government defers JIPL proposal for 100 per cent foreign equity induction

24 Apr 2010

The government has deferred a decision on Jaipur IPL Cricket Pvt Ltd's (JIPL) proposal for 100 per cent foreign equity induction as the Foreign Investment Promotion Board (FIPB) had rejected the proposal last year.

JIPL had approached the FIPB seeking its permission for induction of 100 per cent foreign equity, by way of shares, for consideration other than cash.

The FIPD had, in October last year, rejected the proposal forcing the company to go for a re-application.

The proposal has reportedly been forwarded to the Central Board of Direct Taxes' (CBDT) investigation arm, which is looking into the funding of IPL teams as also allegations of money laundering and tax evasions.

The finance ministry said yesterday that the JIPL proposal was one of 17 foreign direct investment (FDI) proposals deferred by the FIPB.

The government on Friday cleared a total of 18 FDI proposals worth a total Rs344 crore.