CCEA clears Forum Synergies proposal for $135 mn FDI

The government today allowed Bangalore-based private equity firm, Forum Synergies (India) PE Fund Managers, to receive up to $135 million (about Rs 650 crore) foreign direct investment (FDI) from Mauritius-based Knowledge-Manufacturing Company.     

"The Cabinet Committee on Economic Affairs gave its approval to the proposal of Forum Synergies (India) PE Fund Managers to accept contribution up to a limit of $135 million from India Knowlege-Manufacturing Company under FDI route," an official statement said here.     

This would result in FDI of around Rs 650 crore into the country, the statement added. The Mauritius-based Knowledge-Manufacturing Company will in turn get units in the private equity firm.     

Earlier, objections were raised by the Department of Revenue to the proposal on the ground that it may involve an alleged "treaty shopping", sources said.     

Treaty shopping refers to taking advantage of the double taxation avoidance agreement by routing investment through Mauritius.     

The PE firm is co-founded by former president & CEO of GE Consumer & Industrial for India, Samir Inamdar.