For the third time in a row, the Foreign Investment Promotion Board on Monday deferred a decision on Vodafone's deal to buy controlling stake in Hutch-Essar, India's fourth-largest mobile company, in view of non-clarity over the foreign shareholding in the company.
"FIPB will meet next Friday to discuss the issue... We have received the law ministry's views and it has been circulated among the members. We shall take some time to study them," Ajay Dua, secretary in the department of industrial policy and promotion, said after the meeting.
Asked if DIPP has given its views on the foreign shareholding pattern in Hutch-Essar, Dua said: "It is not an individual's matter... there has to be a collective decision by all the participants of FIPB."
Sources in the know, however, said the law ministry has given a clean chit to Hutchison, which has sold a direct 52 per cent stake to UK's Vodafone for over $11 billion.
FIPB's nod is necessary to complete the deal as this would ascertain there was no breach of FDI norms by Hutchison.
Doubts have been raised over the minority stake of 12.6 per cent held jointly by Hutch-Essar managing director Asim Ghosh and Max Group chief Analjit Singh. Reserve Bank of India is also looking into the shareholding pattern.
The race for Hutch-Essar: Complete coverage
