The Hindu Business Line : FIPB defers decision on Vodafone deal

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FIPB defers decision on Vodafone deal

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New Delhi March 20 The Foreign Investment Promotion Board (FIPB) on Tuesday deferred a decision on Vodafone's proposal to acquire Hutchison Telecom International Ltd's (HTIL) stake in Hutchison Essar.

Vodafone has sought Government approval to complete the acquisition, which would give it controlling stake of 52 per cent in the mobile services venture.

According to sources, the decision was deferred because the Reserve Bank of India has sought more time for completing its investigation into Hutchison Essar's shareholding pattern.

The Finance Ministry had sought the comments of the RBI and the DoT on whether the 12.26 per cent share held by Mr Asim Ghosh, Managing Director of Hutch-Essar, and Mr Analjit Singh, Chairman of Max India, amounted to violation of foreign exchange regulations.

The FIPB is likely to take up the proposal again during its meeting scheduled for March 29.

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