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Bharti Airtel suspected of forex rule violation

Country's largest private telecom company Bharti Airtel has come under the scrutiny of the Enforcement Directorate for suspected violation of provisions of the Foreign Exchange Management Act (FEMA).

twitter-logoPTI | August 16, 2011 | Updated 22:22 IST

Country's largest private telecom company Bharti Airtel has come under the scrutiny of the Enforcement Directorate for suspected violation of provisions of the Foreign Exchange Management Act (FEMA).

"The Securities and Exchange Broad of India (SEBI) has received complaints inter-alia alleging that shareholding of promoter group of Bharti Airtel Limited was increased from 60.91 per cent as on June 30, 2007 to 67.15 per cent as on September 30, 2008 without providing an open offer," Namo Narain Meena, Minister of State for Finance said in a written reply to Rajya Sabha on Tuesday.

The complaint alleged that this is in violation of Regulation 11 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

The Minister added that Central Board of Direct Taxes has received a reference containing allegations regarding improper accounting treatment of licence fee and spectrum charges by the company.

"The Directorate of Enforcement has also initiated enquiries about suspected contraventions of the provisions of the Foreign Exchange Management Act by Bharti Airtel," Meena said.

When contacted, the company said that it adheres to standards of corporate governance and always complies with all the rules and regulations laid down by various agencies and the licensor namely DoT.

The company said that it will co-operate with authorities in the investigation.

"We will provide all relevant details to the concerned authorities as and when required and will offer full assistance to clarify any concern," the company's spokesperson said.

Shares of the company were trading at Rs 396.85 a piece, up by 1.94 per cent, during second half of the day on BSE.
 

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