The Hindu Business Line : Hutch Essar is `FDI-compliant'

New Delhi March 8 Hutchison Telecom International Ltd (HTIL) said on Wednesday that the allegations levelled by an Indian consumer group that the Hong Kong-based company held more stake in mobile firm Hutch-Essar than what was permitted under the FDI policy was baseless.

Consumer group Telecom Watchdog had filed public interest litigation in the Delhi High Court alleging that HTIL was holding more equity than the 74 per cent FDI cap in Hutchison Essar through benami transactions.

In a statement to the Hong Kong Stock Exchange, HTIL said, "The company's arrangements with certain Indian shareholders of Hutchison-Essar, which have been in place for some time, were structured in compliance with the FDI Regulations and have been approved by the relevant Indian authorities. It believes Hutchison Essar is FDI compliant and the transaction will not affect such FDI compliant status."

Telecom Watchdog claimed that foreign holding in Hutch-Essar was 89.03 per cent.

The Max India Chairman, Mr Analjit Singh, who holds around 8.75 per cent and the Hutchison Essar MD, Mr Asim Ghosh, holds 6.25 per cent separately, replied that they are the sole owners of their stakes in HEL. Telcom Watchdog has alleged that the equity held by the two individuals was being held on behalf of HTIL.

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