Hutch issue referred to FIPB for probe

New Delhi, Mar 9 (UNI) The Delhi High Court today referred the issue of Hutch to the Foreign Investment Promotion Board(FIPB) to complete an inquiry within two months, on the allegation that foreign companies were holding more than 74 per cent shares against the foreign direct investment(FDI) rules of the telecom sector.

A Division Bench of Chief Justice M K Sarma and Justice Sanjiv Khanna directed the Centre and FIPB to complete the probe expeditiously.

The PIL filed by Telecom Watchdog, a voluntary agency, on March 7, alleged the Rs 85,000 crore deal between telecom major Hutch and British telecom company Vodafone had flouted the rules as the foreign companies were holding more than 89 per cent shares.

''The telecom sector is universally considered to be an extremely sensitive area and most countries of the world, including the United States(US) and Canada regulate the extent to which foreigners can own interest in a company,'' said the petition.

UNI