Govt defers decision on Vodafone stake sale by Singh, Ghosh
New Delhi: Based on the recommendation of
the Foreign Investment Promotion Board (FIPB), the government
has deferred a decision the proposals of Analjit Singh and
Asim Ghosh to part-sell their minority stakes in Vodafone
On October 30 this year, the FIPB had recommended that a
decision their move be deferred as, among other things, the
Department of Revenue had objected to the proposals on the
ground of "treaty shopping", or tax avoidance, highly-placed
sources told agency.
In the domestic context, treaty shopping refers to cases
where investors use the Mauritius route to bring in
investments, taking advantage of the double-tax avoidance
treaty between the two countries.
Sources also said the Department of Industrial Policy and
Promotion (DIPP) has sought more time in taking a decision
saying that they are in the process of examining the same.
Meanwhile, the FIPB has directed the DIPP to examine the
comments of the Department of Economic Affairs (DEA), which
had held that the proposals `technically conform` to FDI
guidelines on the issue of "Indian control" of the companies
The DEA, however, is believed to have opined that the
numerous holding companies through which Singh and Ghosh hold
stake in Vodafone Essar, are all shell companies.
Singh and Ghosh want to sell 49 per cent each of their
holdings in these two investment companies that indirectly own
stakes in Vodafone Essar.
More from India
More from World
More from Sports
More from Entertaiment
- Boyfriend murders DU student Arzu Singh; hides body in his house for three days
- International Fleet Review: India shows off naval prowess in "Operation Demo"
- Declared unfit for employment, man invents cost-effective electric car called Pixie!
- Can comments on social media against politicians land you in jail?
- Is Pakistan trying to divert India from issue of terrorism?
- India vs Sri Lanka 2016, 1st T20I: Squads, date, time, TV listing, live streaming
- SSC CGL 2016 exam dates out; read the eligibility criteria, registration details
- Bangladesh scraps China-proposed deep sea port, India offers help to develop another
- PSL 2016 T20, Match 7: Quetta Gladiators vs Peshawar Zalmi – Key players
- Deepika Padukone reads letter written by father – Watch - You will be moved to tears