Spain's Inditex S.A.
An application by Inditex unit Zara Holdings BV to sell a more upscale brand through a joint venture with Tata Group's retail arm, Trent Ltd
In January, India allowed foreign single-brand retailers to set up wholly-owned operations in India, but a requirement that companies source 30 percent from small local firms has discouraged retailers from applying.
Only IKEA and Pavers, a British shoe chain, have applied so far, hoping to bank in on rising middle-class incomes and an expanding appetite for global brands and lifestyles.
Earlier, the FIPB, which clears foreign direct investment proposals, had put the application on hold, citing violation of a rule that says an investor must own the brand it is proposing to bring to India, according to media reports.
Inditex has maintained that Zara Holdings BV is a wholly-owned subsidiary of Inditex, and that both it and Zara Holdings own the Grupo Massimo Dutti brand, despite the proposed joint venture with the Tata unit, media reports have said.
Inditex could not be immediately reached for comment.