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Rediff News  All News  » Business » IDFC misused funds: NGO

IDFC misused funds: NGO

April 23, 2007 09:20 IST

Telecom Watchdog, a Delhi-based NGO, has alleged that IDFC misused funds from the India Development Fund to fund transactions in Hutch Essar Ltd.

The NGO has further alleged that an IDFC company -- SMMS Investments Pvt Ltd -- had purchased Hutch Essar shares, amounting to a total 2.77 per cent equity in the company, at Rs 103.59 per share and executed agreements to sell below par value at Rs 6.23.

Phone calls and messages to IDFC and senior officials of its private equity arm remained unanswered till the time of going to the press.

The NGO has already moved the Delhi high court alleging that foreign direct investment in Hutch has breached the prescribed limit of 74 per cent.

BS Reporter in New Delhi