MCA issues fresh notices to three Tata group companies

Seeks details of shareholding pattern in relation to Idea Cellular

In a new twist to the almost six-year-old dispute between the Tatas and the Aditya Birla Group over Idea Cellular Ltd, the ministry of corporate affairs (MCA) has issued fresh notices to three Tata group companies, asking them to furnish their shareholding details by June 13, according to a ministry official.

The three companies are Tata Teleservices (Maharash-tra) Ltd, Tata Industries Ltd and Tata Sons Ltd.

Telecom Secretary R Chandrasekhar had recently written to MCA Secretary Naved Masood, asking about the status of the matter, after which the notices were sent.

When contacted, a Tata Teleservices spokesperson declined to comment. The group has been denying the allegations since the issue surfaced.

The department of telecommunications had last year asked MCA to examine if Tata Sons held more than 10 per cent stake in Idea Cellular and Tata Teleservices at the same time.

Although the registrar of companies (RoC) had received shareholding details from Idea Cellular, details from the three Tata group companies are still awaited.

The controversy dates back to 2006, when Tata group exited Idea Cellular by selling its 48 per cent stake in that company to the Aditya Birla Group.

The Tatas had to exit Idea Cellular after the Birlas alleged that the Tata group was violating licence conditions by holding shares over and above the permissible limit in more than one company for the same service area.

According to DoT rules, a single entity cannot hold more than 10 per cent stake in two companies operating services in the same circle. Idea Cellular and Tata Teleservices had overlapping service areas.

As per DoT estimates, Tata Sons had 50.95 per cent holding in Tata Teleservices Ltd. Tata Sons had a 28.62 per cent holding in Tata Industries, was holding 31.69 per cent stake in Idea Cellular directly. Besides, Tata Industries was also holding 100 per cent stake in Apex Investment (Mauritius), which held 16.45 per cent stake in Idea Cellular.

It is understood that the telecom secretary sent a reminder to the ministry of corporate affairs after receiving a communication from the Central Bureau of Investigation (CBI) on the issue. The agency is probing the issue as part of its investigation into mobile licences issued between 2001 and 2007, complying with a Supreme Court direction. Currently, the investigation by CBI is in early stages.