New Page 1
TUESDAY, 15 MAY 2012 00:25 J GOPIKRISHNAN | NEW DELHI
For days Home Minister P Chidambaram has pleaded innocence in the Aircel-Maxis
deal, but new facts show that the acquisition of Aircel by the Maxis in 2006 was
illegal.
The deal, which took place when Chidambaram was the Finance Minister, violates
Indian laws. While domestic laws place a cap of 74 per cent on foreign
investment in telecom sector, in the Aircel-Maxis deal, the latter acquired
nearly 100 per cent stake in three tranches.
Equally shocking is the fact that a probe instituted by the Finance Minister and
Department of Telecom in early 2007 to look into this violation, has reached
nowhere. The Government has so far not initiated any action against Maxis.
On March 15, 2006, Maxis declared to the Malaysian Stock Exchange that it
proposed to acquire 99.714 per cent in Aircel. This was before the Foreign
Investment Promotion Board (FIPB) — under Chidambaram — cleared the so-called
final acquisition on October 3, 2006.
“Aircel Transactions comprising:
(I) Proposed acquisition by Global Communication Services Holdings Ltd (GCSHL),
a wholly-owned subsidiary of Maxis, and Deccan Digital Networks Private Limited
(JVC), a proposed joint venture company of Maxis in the Republic of India, of
94,864,865 and 85,135,135 equity shares of 10 Indian Rupees each in Aircel
Limited (Aircel), a company incorporated in the Republic of India (“Aircel
Shares”), representing 39% and 35% respectively, of the enlarged issued and
paid-up share capital of Aircel from Aircel Televentures Limited for a cash
consideration of $422 million and $378 million respectively.