<b>Hutch-Essar</b>: HC grants two months for enquiry

The Delhi High Court today directed the centre and the Foreign Investment Promotion Board (FIPB) to complete an inquiry into Hong Kong-based Hutchison Telecom allegedly holding more than the permissible 74% stake in Hutch-Essar within two months.

A division bench comprising Chief Justice M K Sharma and Justice Sanjiv Khanna said: "(Since) the aforesaid matter is before FIPB and an inquiry is (being) done by FIPB, we are not issuing any notice to the companies. The centre and FIPB will decide the matter as expeditiously as possible within two months."

Telecom Watchdog, a civil society group, had filed a petition before the court alleging that foreign holding in Hutch-Essar was 89.03% - far more than the 74% allowed under the FDI policy.

Hutchison Telecom had denied the allegations as "groundless."