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2G petitioner rakes up Hutch-Vodafone deal at SC
In a fresh attempt to expand the ambit of the ongoing SC-supervised probe into telecom licensing, the Centre for Public Interest Litigation (CPIL), the petitioner in the 2G Spectrum case, has filed a fresh affidavit that seeks the CBI investigation on the acquisition of Hutch Essar by Vodafone in 2007.
In a fresh attempt to expand the ambit of the ongoing SC-supervised probe into telecom licensing, the Centre for Public Interest Litigation (CPIL), the petitioner in the 2G Spectrum case, has filed a fresh affidavit that seeks the CBI investigation on the acquisition of Hutch Essar by Vodafone in 2007 and recently also on the finance ministry officials and home minister P Chidambaram in clearing the USD 11 billion deal, reports CNBC-TV18's Siddharth Zarabi.
The CPIL Affidavit claims that Idea Cellular remained silent on benami holding. The Idea Cellular notings are under the RTI Act.
Vodafone has acquired 67% of Hutch Essar in violation of Foreign Investment Promotion Board (FIPB), while FIPB had allowed only 52% of transfer of Hutch Essar to Vodafone, rejecting the remaining 15% stake transfer, which is held by Analjit Singh, Asim Ghosh & IDFC.
Reacting strongly on the issue, Vodafone said that they have always complied fully with FDI guidelines and have received all necessary FIPB approvals. The telecom major has blamed CIPL for the allegation.
"CPIL's allegation is not new and is completely spurious. We find this litigation baseless, wholly unfounded and without merit," added the company.
When Vodafone acquired Hutch Essar in February 2007, FDI in Hutch Essar was 86%. The Reserve Bank of India termed it as a serious violation in March 2007 after the breach came into light. However, the law minister had cleared the deal saying that there was no violation made by the companies.
