The Enforcement Directorate investigates airtel over alleged FEMA violation

 

In a written reply to the Rajya Sabha, Namo Narain Meena, Minister of State for Finance, has said that Bharti airtel has come under the Enforcement Directorate?s scanner for alleged violations of the Foreign Exchange Management Act (FEMA).

Meena also said that the Securities and Exchange Board of India (SEBI), and the Central Board of Direct Taxes (CBDT) have received complaints against the company. SEBI received complaints alleging that Bharti airtel increased the promoter group’s shareholding without following the prescribed norms.

It is alleged that shareholding was increased from 60.91per cent as on June 30, 2007 to 67.15 per cent as on September 30, 2008 without making an open offer. This is violation of Regulation 11 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997.

Meanwhile, Bharti airtel has said that it will cooperate with the investigating agencies. In a statement the operator stated, ?Bharti airtel adheres to the highest standards of corporate governance and always complies with all the rules and regulations laid down by various agencies and the licensor, the Department of Telecommunications (DoT).

?We will provide all relevant details to the authorities concerned as and when required and will offer full assistance to clarify any concern?, the statement added.