81 FDI cases under probe: Sitharaman

NEW DELHI: India is currently investigating as many as 81 cases for alleged violation of provisions of the Foreign Exchange Management Act relating to foreign direct

NEW DELHI: India is currently investigating as many as 81 cases for alleged violation of provisions of the Foreign Exchange Management Act relating to foreign direct investment (FDI).

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“81 cases have been under investigation by the Directorate of Enforcement for alleged contravention of the provisions of the Foreign Exchange Management Act, 1999, relating to FDI, out of which show-cause notices were issued in 22 cases,” commerce and industry minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

According to Sitharaman, the remaining 59 cases are at various stages of investigations, adding that “disclosure of names of companies and other details of these cases at this stage may not be in public interest as the same may hamper the investigations”.

These 81 cases under investigations involve FDI between 2013 and June 30, 2016.

Besides, replying to a separate question, Sitharaman informed the Parliament that the government is yet to decide whether to impose a ban on FDI in the tobacco sector or not.

According to the current rules, FDI is banned in manufacturing of cigars, cheroots, cigarillos and cigarettes of tobacco or tobacco substitutes.