Company affairs ministry may not look into Vodafone deal
Rajesh S Kurup / Mumbai April 07, 2007
The Ministry of Finance has not sought the help of the Ministry of Company Affairs to inquire into the acquisition of Hutchison-Essar by Vodafone.
“At present, there is no move to involve the company affairs ministry as the finance ministry has the power and right to investigate the issue. However, if need arises, the ministry could also be roped in to provide its expertise,” a source in the ministry said.
The Foreign Investment Promotion Board (FIPB), under the finance ministry, has convened a meeting on April 12 to discuss the issue. A final approval for the deal is expected within a week of the meeting. Vodafone is aiming at closing the deal by June.
Earlier, the finance ministry had referred the issue to the law ministry for opinion on several issues, including the shareholding pattern in the Indian company and a possible breach of the foreign direct investment (FDI) norms laid down for telecom service providers.
Inquiries into shareholding and foreign investment of Hutchison-Essar are being done, following a public interest litigation filed by NGO Telecom Watchdog in the Delhi High Court earlier this year. The court had ordered the FIPB to consider and decide on the issue in two months.
Company affairs ministry may not look into Vodafone deal
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