India Examining JTI's Joint Venture Investment

Source from:  Tobacco Reporter 07/20/2010

India's Finance Ministry has asked the Ministry of Corporate Affairs to look at how Japan Tobacco International added $65 million of foreign investment to its Indian joint venture without raising its equity in the venture, according to a Business-Standard story. The transaction was said to have been put through at the end of March, shortly before the government decided to ban further FDI (foreign direct investment) in the manufacture of tobacco products. Under an earlier law, 100 per cent FDI was allowed, but was subject to approval by the Foreign Investment Promotion Board. JT International (India) is a joint venture between JTI and the Mumbai-based Thakkar family, with each partner having a 50 per cent stake. Enditem