Ahead of the key vote by Hutchison Telecom shareholders on sale of Indian assets to Vodafone, the Hong Kong-based firm and its minority partners in Hutch-Essar have asserted that their investments met foreign direct investment norms.
In a statement to 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.
FIPB had late last month sought clarifications from HEL, in which HTIL holds a controlling stake, on the shareholding pattern related to the two minority shareholders Asim Ghosh and Analjit Singh. It had also written to the Reserve Bank of India and the Department of Telecom seeking their comments on alleged breach of FDI norms by HTIL. "Hutchison Essar is FDI compliant and the transaction will not affect such FDI-compliant status," HTIL said.
Meanwhile, Analjit Singh and Asim Ghosh have separately written to the Foreign Investment Promotion Board that their investments in HEL met FDI norms and they were the sole beneficiaries of their stake.
Ghosh, HEL's managing director and holder of 4.68 per cent stake, said: "I am the exclusive beneficial owner of my shares in my company, enjoying full and exclusive rights to vote and participate in any benefits accruing to these shares."
Similarly, Analjit Singh of Max Healthcare said: "The entire voting share capital of Analjit Singh group companies are legally and beneficially owned by my wife and me."