17 FCCB violations investigated, says govt

The Reserve Bank of India (RBI) has found and took action against 17 cases of irregularities by companies that raised foreign currency convertible bonds (FCCBs) since April 2005, Minister of State for Finance Namo Narain Meena said today.

The FCCB violations were to the tune of $1 billion (around Rs 4,600 crore). Some of these loans include $25 million raised by Country Club, $100 million raised by Hotel Leela Venture, twin FCCBs by Educomp Solutions worth $105 million, three FCCBs worth $180 million by 3i Infotech and various FCCBs raised by Reliance Communications worth Rs 5,142 crore, the minister told the Rajya Sabha. Asked about the investigations carried out by RBI and the Enforcement Directorate (ED) on the matter, Meena said the central bank did not carry out investigations, and the cases were referred to ED.

“The information pertaining to ED is being collected and will be laid on the table of the House,” the minister said.