Aircel-Maxis proposal okayed in normal course: Chidambaram

NEW DELHI: Former finance minister P Chidambaram on Thursday said he went by the recommendations of senior bureaucrats, 'known for their competence and integrity', in clearing the Aircel-Maxis proposal when it was put before him by the Foreign Investment Promotion Board ( FIPB).

"The Aircel-Maxis case was recommended and submitted by the FIPB to the finance minister through the additional secretary and the secretary, department of economic affairs. Both officers, widely acknowledged for their competence and integrity, recommended the proposal for approval and I, as finance minister, granted approval in the normal course," he said in a statement.

Chidambaram's statement was in response to a TOI report on Thursday about CAG taking exception to the grant of approval to controversial investment of Maxis in Aircel, without disclosure of full value of the proposal.

Chidambaram said: "FIPB officials, including the secretary and additional secretary, had categorically told the CBI that, under the rules then in force, only the par value of the investment in the company/project was taken into consideration. They have also clarified that the case was rightly submitted to the finance minister for approval and there was no irregularity in the procedure that was followed."

The former finance minister said he had approved the proposal, as submitted by FIPB, without any change or modification.

"This was not a case that involved either government revenue or government expenditure. Nevertheless, if audit has raised some questions, I am sure that the ministries/officers concerned will respond to those questions," he said.

"FIPB comprises of the secretaries to government in the departments of economic affairs, industrial policy, commerce, and economic relations (MEA) with power to co-opt other secretaries depending upon the subject matter under consideration. It is the FIPB which considers and recommends foreign investment proposals. It is also the FIPB which decides, based on the rules in force, whether the case should be submitted for approval to the finance minister or the CCEA," he said.

Chidambaram was recently examined by CBI which has alleged that the promoter of Aircel was forced by the then telecom minister Dayanidhi Maran to sell his stake to Maxis, a Malaysian company. In exchange, Maran allegedly got Rs 742 crore from the Malaysian company, the agency has alleged.