Investigators seek details on all DE Shaw India deals – report
Indian investigators probing alleged foreign exchange irregularities relating to an investment made by DE Shaw have asked the Foreign Investment Promotion Board (FIPB) for details of all domestic entities that received funding from the private equity firm.
The Enforcement Directorate (ED), which is acting under the Foreign Exchange Management Act, also wants information on entities that withdrew applications for investment by DE Shaw after the FIPB queried or rejected proposals, The Hindustan Times reported. Apparently this comes after questions put to the private equity firm went unanswered.
The ED probe is believed to have arisen from a recommendation made by the Reserve Bank of India (RBI) earlier this year concerning DE Shaw's purchase of an 18% stake in print media company Amar Ujala for INR1.17 billion in 2007.
Amar Ujala subsequently accused the private equity firm of engaging in fraudulent practices in the deal. The company filed a petition with the Delhi High Court, which asked the RBI, FIPB and Ministry of Corporate Affairs to give their views on the transaction.
DE Shaw has also filed a petition against Amar Ujala, claiming that the deal complied with foreign investment regulations.
The private equity firm has approximately $21 billion in assets under management globally and has been active in India since 1996.
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