Hutchison may furnish loan details this week

Hong Kong-based Hutchison Telecom (HTIL) is expected to submit details of loans to two Indian minority shareholders, to the finance ministry this week. The ministry is looking into alleged breach of FDI norms in Hutch Essar Ltd (HEL). This is required to clear the way for UK telecom giant Vodafone Plc. to complete the $11.1 billion (Rs47,730 crore) acquisition of HEL, in which the UK firm has bought a controlling 52% stake. The Foreign Investment Promotion Board is likely to meet on 23 April to look into the loan details, which were sought by the board from HTIL to examine whether the individual shareholders—Asim Ghosh and Max Group chairman Analjit Singh—were fronting for HTIL. Ghosh and Singh hold 12.6% in HEL, for which they had taken a loan that was backed by HTIL with a provision that HTIL can buy the stake at a later date on par value. This arrangement could lead to circumventing of the FDI limit.