FIPB defers decision on Hutch-Essar

The Foreign Investment Promotion Board (FIPB) today deferred a decision on the Hutch-Essar shareholding case again. The board will now meet on April 27.

"A 24-page report of the law ministry on the matter was submitted to the FIPB in the meeting. The report has been circulated among the members. We will study it in detail and meet on the coming Friday," Industry Secretary Ajay Dua said.

When asked whether the Reserve Bank of India had sent any further comments, Dua replied in the negative. Asked whether a final decision would be taken in the upcoming FIPB meeting, he said, "Hopefully so."

As reported by Business Standard on Monday, the law ministry has cleared the shareholding pattern in Hutch-Essar. In the law ministry's opinion, Asim Ghosh, Analjit Singh and IDFC are the legal and beneficial owners of the near 15 per cent indirect shareholding in Hutch-Essar.

"There has been no assignment of shareholder rights in favour of any entity, much less a foreign entity," the ministry said.

The ministry also said there had been no violation of FDI norms and the Companies Act, 1956.