In a show cause notice, the Information and Broadcasting Ministry asked Bharti Telemedia to furnish explanation failing which the government could consider suspending the licence till such time the company obtains necessary approvals from FIPB and meet the eligibility conditions.

When contacted a Bharti spokesperson said the company has complied to all licence conditions in its DTH venture and the same has been communicated to the government.

“We are in complete compliance of all necessary regulatory guidelines, including FDI and foreign equity component as laid down in DTH licence conditions and requirements,” the spokesperson said.

“All these particulars were duly submitted to the Ministry of Information and Broadcasting and licence was granted by Ministry after consideration of all the details,” the spokesperson added.

Bharti Telemedia, the DTH arm of Bharti Enterprises, was issued the show cause notice last month for alleged violation of FDI guidelines as well as well eligibility conditions of the licence agreement.

According to guidelines, any foreign investment in cable and broadcasting services is through the FIPB route and prior approval is required for such investment in any company.

Source: NDTVProfit.com