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Press Information Bureau
Government of India
Ministry of Finance
28-April-2012 19:11 IST
Allegations have been made that the proposal of M/s Global Communication Services Holdings Ltd, Mauritius (a wholly owned subsidiary of M/s Maxis Communications Berhad) to acquire 73.99 per cent equity in M/s Aircel Ltd was delayed by the then Finance Minister in order to benefit certain persons.
The allegations are totally baseless.
The records of the FIPB have been perused. They reveal the following:
On 6.1.2006, the applicant, M/s Global Communication Services Holdings Ltd acquired 26 per cent equity in M/s Aircel Ltd through the automatic route.
On 30.1.2006, the applicant applied for enhancing its equity in M/s Aircel Ltd from 26 per cent to 73.99 per cent.
The application was processed in the normal course and the Ministries and Departments concerned took the normal time of 4 to 6 weeks to offer their comments. The proposal was included in the agenda notes circulated on 17.2.2006.
On 7.3.2006, the matter was placed before the meeting of the FIPB. DoT conveyed its support to the proposal at the meeting. FIPB recommended the proposal for approval on 7.3.2006 and file was moved by Deputy Secretary on 10.3.2006.
The minutes of the FIPB meeting were placed before the then Finance Minister on 13.3.2006 and he approved the same.
The formal letter of approval was issued by the Ministry of Finance on 20.3.2006.
From the facts stated above, it will be abundantly clear that there was no delay whatsoever. It is unfortunate that baseless allegations should be made without verifying the facts.
***
GM/RKS
Allegations of undue delay in approval process rebutted by records showing timely processing and ministerial approval within the expected timeframe. Allegations of intentional delay in approving a foreign acquisition are rebutted by administrative records showing normal processing: application filed to enhance equity on 30 January 2006, inter-ministerial comments within the usual four to six weeks, FIPB consideration and recommendation on 7 March 2006, ministerial review on 13 March 2006, and formal approval issued by the Ministry of Finance on 20 March 2006. of Press 'Enter' after typing page number.
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