RBI stops all payments in Essar bond sale for now

The Reserve Bank of India, or RBI, has asked Essar Communications for all details of its bid to raise Rs 4,280 crore by selling bonds. These bonds are backed by a put option that Essar has to sell its 33% stake in Vodafone Essar. RBI has, sources say, told all parties to hold back payments until it goes through the deal. It is possible the deal will pass RBI scrutiny. CNBC-TV18's Latha Venkatesh reports.

Below is verbatim transcript of Latha Venkatesh's comments on CNBC-TV18. Also watch the accompanying video.

The deal should have been a done deal by now but it looks like the RBI has asked for all the details and has told all parties to hold back payments till RBI takes a decision.

It could be just a routine check; it could be just a business as usual kind of check but till the RBI replies people would be waiting to hear what RBI said especially because guaranteed bonds and assets outside the country are issues that have been sticky in the past. That's why until RBI says yes perhaps it is something which is not over. One doesn't know whether it's anything more serious than that at this juncture except that the RBI's vetting is still awaited.

CNBC-TV18 tried to reach Essar but there was no response from the company. Top Essar officials could not be reached on phone. We will have to wait and see whether RBI will come back with a reply shortly which it was believed to have promised.