New Delhi:
The government on Friday said it has deferred a decision on allowing induction of 100 per cent foreign equity in Jaipur IPL Cricket Pvt Ltd, one of the owners of Rajasthan Royals.
The proposal from Jaipur IPL Cricket Pvt Ltd (JIPL) is one of the 17 proposals that were deferred by the Foreign Investment Promotion Board (FIPB), an official release said.
The company (JIPL) had sought "to induct 100 per cent foreign equity by way of issue of shares for consideration other than cash", it added.
Earlier in last October, the FIPB had rejected a proposal from the company to allow induction of foreign equity. The company had reapplied, which has also been deferred in the recent meeting of the board on April 9.
The proposal has now been sent by FIPB to the Central Board of Direct Taxes' (CBDT) investigation arm for a detailed report, a finance ministry official said.
JIPL is the only IPL franchisee that approached the government to allow induction of foreign equity, the official added.
Last year, JIPL had sought permission from the government to induct foreign equity capital worth over USD 5.82 million (about Rs 26.7 crore).
The company had sought to issue shares to UK-based Emerging Medial (IPL) Ltd (EMIPL) against USD 50,48,885.25 deposit paid by the British firm to the Board for Control of Cricket in India (BCCI).
It had also sought to issue shares to EM Sports Holding Ltd, Mauritius (MHC) for USD 7,73,480.99 against the same amount paid as franchise fee by MHC to BCCI on behalf of JIPL.
The Department of Economic Affairs (DEA) had earlier conveyed 'no objection' to the transaction, subject to satisfactory proof of foreign exchange.
The proposal did not entail physical flow of FDI into the country.
JIPL, which is a wholly-owned subsidiary of MHC, was incorporated in March 2008 for managing and operating the Rajasthan Royals team, co-owned by actor Shilpa Shetty that won the first IPL tournament in 2008.
MHC, in turn is a joint venture between EMIPL, Tresco International Ltd and two other firms based in Hong Kong and Bahamas.
The proposal from Jaipur IPL Cricket Pvt Ltd (JIPL) is one of the 17 proposals that were deferred by the Foreign Investment Promotion Board (FIPB), an official release said.
The company (JIPL) had sought "to induct 100 per cent foreign equity by way of issue of shares for consideration other than cash", it added.
Earlier in last October, the FIPB had rejected a proposal from the company to allow induction of foreign equity. The company had reapplied, which has also been deferred in the recent meeting of the board on April 9.
The proposal has now been sent by FIPB to the Central Board of Direct Taxes' (CBDT) investigation arm for a detailed report, a finance ministry official said.
JIPL is the only IPL franchisee that approached the government to allow induction of foreign equity, the official added.
Last year, JIPL had sought permission from the government to induct foreign equity capital worth over USD 5.82 million (about Rs 26.7 crore).
The company had sought to issue shares to UK-based Emerging Medial (IPL) Ltd (EMIPL) against USD 50,48,885.25 deposit paid by the British firm to the Board for Control of Cricket in India (BCCI).
It had also sought to issue shares to EM Sports Holding Ltd, Mauritius (MHC) for USD 7,73,480.99 against the same amount paid as franchise fee by MHC to BCCI on behalf of JIPL.
The Department of Economic Affairs (DEA) had earlier conveyed 'no objection' to the transaction, subject to satisfactory proof of foreign exchange.
The proposal did not entail physical flow of FDI into the country.
JIPL, which is a wholly-owned subsidiary of MHC, was incorporated in March 2008 for managing and operating the Rajasthan Royals team, co-owned by actor Shilpa Shetty that won the first IPL tournament in 2008.
MHC, in turn is a joint venture between EMIPL, Tresco International Ltd and two other firms based in Hong Kong and Bahamas.
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