In a new turn to the ongoing controversy over the uplinking facility for Star's news operations from India, Foreign Investment Promotion Board has deferred consideration of its proposal even as an inter-ministerial group has been constituted to go into foreign equity norms for uplinking.

Government sources declined to divulge the reason for it but added that home ministry's clearance was also awaited.

Meanwhile, an inter-ministerial group comprising of representatives of the ministries of information and broadcasting, law and finance and the Department of Company Affairs has been constituted to examine foreign equity norms, particularly relating to uplinking of news and current affairs channels to ensure these are water-tight enough to prevent violations.

The committee will ensure fair compliance with the guidelines in letter and spirit and plug any loopholes, they added.

Star has floated Media Content and Communication Private Ltd for the uplinking purpose, in which is has offloaded 26 per cent stake in favour of resident Indians so that foreign equity in this venture is limited to the maximum permissible limit.

During the first four months of this fiscal, Star India is believed to have earned advertising and other revenue totalling about Rs 22 crore (Rs 220 million).

Meanwhile, a company spokesperson said replies to the queries the government had raised on Thursday will be sent on the next working day.

Star withdraws nominee from MCCS board

Star India said on Friday that it has withdrawn one of its nominees on the board of directors of Media Content and Communication Services after adman Suhel Seth became the single largest shareholder, having bought out Kumarmangalam Birla's 25 per cent stake.

Thus after the shareholding pattern was changed, MCCS board strength has been reduced from five to three directors.

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"Star had initially nominated two directors -- Ajay Sharma and Kaushal Dalal -- to the MCCS board when it was the single largest shareholder with 26 per cent stake. But since Suhel Seth now holds the single largest share in MCCS, Star has withdrawn Sharma," a spokesperson told PTI from Mumbai.

The spokesperson said when MCCS was formed, there were five directors on the company's board. These included adman Suhel Seth in his personal capacity, the two Star nominees, a Hemedra Kothari representative Prahlad Shaligram and the Birla nominee G K Tulsihan.

"Since Birla's exit, Tulsihan has also ceased to be a member of the MCCS board of directors," the spokesman said.

Asked about reports that chief executive officer Ravina Raj Kohli was also on the MCCS board, the spokesperson said: "She was never on the board of MCCS. She is the CEO and continues to hold that position."

The government had on Thursday sought some more clarifications from Star on issues including uplinking through VSNL and information on its various shell companies.

Asked about details of the shell companies Star has floated in order to get permission to uplink from India, the spokesperson said while Star News Broadcast Ltd was the company, which has applied to the FIPB for permission to invest in India, Touch Telcontent India Pvt Ltd was to be the infrastructure provider for Star's uplinking venture.