Delhi HC orders probe into foreign holding in Hutch-Essar

NEW DELHI: The Delhi High Court on Friday directed the Centre and Foreign Investment Promotion Board to complete within two months, an inquiry into Hong Kong-based Hutchison Telecom allegedly holding more than the permissible 74 per cent stake in Hutch-Essar.

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 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 mobile firm Hutch-Essar was 89.03 per cent, far more than the 74 per cent allowed under the FDI policy.

Hutchison Telecom had denied the allegations as "groundless."