The Foreign Investment Promotion Board (FIPB) has again turned down Meta Telecom Pvt Ltd proposal to increase foreign investment in the company to 73.45 per cent form 40 per cent. In 2007, the long-distance communication services company, promoted by Amit Gupta and Dalto Thread Ltd, had jumped into the fray for mobile licences.
Currently, Cyprus-based Daltotrade has an investment of 40 per cent that was made through the automatic route under the foreign direct investment (FDI) policy.
Meta Telecom, which has been issued national and international licences by the Department of Telecommunications, had sought the FIPB nod to permit Daltotrade to raise its foreign holding in the company.
The proposal was also rejected by the Department of Revenue as the source of the funds and the antecedents of the investor were not clear. The proposal was rejected by the department in August last year as well on the same grounds.
The department said Meta Telecom had only provided skeletal information about Daltotrade and key details like the company’s financial credibility and sources of funds had not been furnished.
The Ministry of Home Affairs also reiterated its stand on the issue and rejected the proposal. In October last year, it had asked the FIPB to submit the full particulars of Naseem Ahmed, who had made the payment to the Ministry of Corporate Affairs on behalf of Meta Telecom.
After receiving the required information from the company, the home ministry reiterated its opposition to the proposal.
The FIPB, in its meeting on January 9, re-examined the reports from various departments and rejected the proposal by Meta Telecom to increase its foreign investment.
