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Government released the records of FIPB on the deal and claimed that there was no delay in awarding the deal whatsoever and it is unfortunate that baseless allegations are made without verifying the facts.

Govt denies allegations against Chidambaram on Aircel-Maxis deal

30-Apr-2012, 10:08

The Government of India has denied the allegations made against Union Home Minister P Chidambaram on the Aircel-Maxis deal and claimed the allegations are totally baseless.

In a statement issued by the Government on 28 April 2012 defending P Chidambaram, the Government said that according to the records of Foreign Investment Promotion Board (FIPB), it will be abundantly clear that there was no delay in awarding the deal whatsoever and it is unfortunate that baseless allegations are made without verifying the facts.

In the statement issued, the Government released the records of FIPB on the deal. The records that have been perused by the Government reveal that on 6 January 2006, the applicant, Global Communication Services Holdings acquired 26% equity in Aircel through the automatic route. On 30 January 2006 applicant applied for enhancing its equity in Aircel from 26% to 73.99%.

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 February 2006.

On 7 March 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 March 2006 and Deputy Secretary moved file on 10 March 2006.

The minutes of the FIPB meeting were placed before the then Finance Minister on 13 March 2006 and he approved the same. The Ministry of Finance issued the formal letter of approval on 20 March 2006, according to the records of FIPB released by Government.

Allegations have been made that the proposal of Global Communication Services Holdings, Mauritius (a wholly owned subsidiary of Maxis Communications Berhad) to acquire 73.99% equity in Aircel was delayed by the then Finance Minister P Chidambaram in order to benefit certain persons.