New Delhi, April 13. (PTI): With the High Court deadline for completing a probe into alleged breach of FDI norms by Hutch- Essar nearing, the Foreign Investment Promotion Board is expected to take a decision on the Vodafone-Hutch transaction when it meets on April 23.

Hong Kong-based Hutchison Telecom International Ltd, which sold its majority stake in Hutch-Essar to Vodafone, has already made its final submission before the investment regulator.

The Board, which has deferred the matter twice in the past, would have to decide whether the transaction was compliant with FDI norms by April 23.

In case, FIPB approves the proposal on that day, it would give 15 days time to the Finance Minister for clearing the deal.

The High Court had, on March 9, given two months to regulators FIPB to complete investigations into the allegations that foreign holding in the mobile company was higher than the permissible 74 per cent.

However, the Law Ministry is yet to give its opinion to the FIPB, besides no fresh communication has come from RBI.

FIPB is looking into the allegation that 12.26 per cent stake held by minority shareholders like Asim Ghosh and Analjit Singh are actually owned by HTIL as it stood guarantee to the loans taken by them to acquire this stake from Kotak Mahindra.

Asim Ghosh, HTIL and Vodafone had clarified before the FIPB last month, while Analjit Singh's clarification came on last Tuesday.

The Delhi High Court direction came on a PIL filed by an NGO, Telecom Watchdog, which alleged that foreign holding in Hutch Essar was 89 per cent.

The issue arose when HTIL said, it placed its 67 per cent in Hutch-Essar on the block.

Of this 67 per cent, HTIL held only 52 per cent and 12.26 per cent was held by Ghosh and Singh. Being Indian nationals, their stake was not considered foreign holding. Essar holds 33 per cent in the venture, of which 22 per cent is through a foreign subsidiary.

The PIL suggested that stake held by Ghosh and Singh must be considered part of foreign holdings because they are funded by HTIL.

The argument is that the total foreign holding then adds up to 89 per cent. Sources say Ghosh and Singh have replied to a Finance Ministry query, saying Vodafone had bought only 52 per cent in Hutch-Essar and a bundle of economic interest in a block of 15 per cent held by them. This includes non-convertible preference shares, excluded from the FDI cap.