The Board is looking into allegations of breach of FDI norms in Hutch-Essar, where the two minority shareholders are said to be fronting for Hutchison and now Vodafone.
NEW DELHI: Ahead of Foreign Investment Promotion Board's meeting on the Hutch-Vodafone deal, Communication and IT Minister Dayanidhi Maran on Wednesday gave a clean chit to the transaction saying there was nothing wrong with it going by the licensing conditions.
"As far as my Ministry is concerned, we have said there is no breach of licensing conditions either by Hutchison or Vodafone," Maran said.
He, however, said FIPB was the right authority to do the due diligence and go into details of the shareholding pattern.
Meanwhile, the two minority shareholders of Hutch-Essar -- Asim Ghosh and Analjit Singh, besides officials of Hutchison and Vodafone will meet Finance Secretary Ashok Jha tomorrow to clarify queries that the Finance Ministry may have.
Max Group Chairman Analjit Singh also met FIPB officials and stated that there was no agreement between him and Hutchison (now Vodafone) to sell his shares on a future date at a face value of Rs 10.
As and when, if sale takes place, it will be on market price, Singh said, adding: "But I have decided to stay with the company and I am the sole owner of my stake."
Earlier in the day, Department of Industrial Policy and Promotion (DIPP) had indicated that Hutch-Vodafone deal of nearly 12 billion dollar was FDI compliant.
"We are optimistic," DIPP Secretary Ajay Dua said when asked if the deal was FDI compliant.
Maran also said that he has received detailed investment plans for India from Vodafone CEO Arun Sarin.
FIPB, which deferred the Hutch-Vodafone deal for the third time on Monday, is likely to meet again on Friday. The Law Ministry has already given its opinion, while the matter is being examined by various other ministries.
The Board is looking into allegations of breach of FDI norms in Hutch-Essar, where the two minority shareholders with 12.6 per cent stake are said to be fronting for Hong Kong- based Hutchison and now Vodafone.
The 12.6 per cent stake is held jointly by Hutchison Essar Managing Director Asim Ghosh and Max Group Chairman Analjit Singh. Both have submitted before the FIPB that they are the sole beneficiaries of their respective stakes.
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