No FDI violation in Hutch-Essar, Centre tells HC

The Centre today submitted before the Delhi High Court that there is no FDI violation in Hutchison-Essar (HEL) as the total foreign direct holding in the company is within the permissible limit of 74%.

This was stated by the government in its affidavit given to a bench comprising Chief Justice M K Sharma and Justice Sanjeev Khanna in response to a PIL by Telecom Watchdog, an NGO, which had alleged that foreign holding in mobile venture Hutch-Essar was 89.03%, far more than the 74% FDI cap for the sector.

Telecom Watchdog had alleged that the 15.03% stake held by Asim Ghosh, Analjit Singh and another company SMMS, was a benami investment by Hong Kong-based Hutchison Telecom International.