New Delhi: The Delhi High Court on Friday directed the Centre and Foreign Investment Promotion Board (FIPB) to investigate whether there are any violations in FDI norms and/or economic transaction laws in Huth-Essar share holding.
The court has also asked the Board to submit the inquiry report in two months on the matter that Hong Kong-based Hutchison Telecom allegedly holding more than the permissible 74 per cent stake in Hutch-Essar.
As quoted by PTI, 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 moved the court, alleging that foreign holding in mobile venture Hutch-Essar was 89.03 per cent, far more than the 74 per cent FDI cap for the sector.
Hutchison Telecom had denied the allegations as "groundless".
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