ED probes Bharti Airtel for suspected forex violations
16 Aug 2011
India's Enforcement Directorate (ED) has begun a probe into suspected foreign exchange violations by GSM service provider Bharti Airtel, the minister of state for finance Namo Narain Meena informed the Parliament.
Namo Narain Meena also told lawmakers the country's markets regulator, Securities and Exchange Board of India (SEBI), has received several complaints over an alleged increase in shareholding by its founders, various media reports said, quoting Meena, who mentioned this in the lower house of the Parliament.
The promoters' shareholding in Bharti Airtel rose to 67.15 per cent from 60.91 per cent between June 2007 and September 2008, without the company offering any shares to the public, he said.
Meena, who was was elected to 14th Lok Sabha from Sawai Madhopur constituency in Rajasthan, also said Indian income tax office had received allegations of "improper accounting treatment" of licence and spectrum fee by the company.
"The Central Board of Direct Taxes has received a reference containing allegations regarding improper accounting treatment of license fee and spectrum charges by the company," Meena said.
In a statement, Bharti Airtel said it has always adhered to the "highest standards of corporate governance" and rules and regulations laid down by various agencies and the licensing authority, the Department of Telecommunications (DoT).
"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 said.
According to the official website of the Enforcement Directorate, its key responsibilities include checking money laundering and enforcement agency of Foreign Exchange Management Act 1999 (FEMA) among others.
