A member of the Parliament is seeking a probe into a possible foreign direct investment rules violation at the insurer Future Generali.
The insurance joint venture between retail fame Kishore Biyani and Italy’s Generali has violated the 26% foreign direct investment limit as the total foreign holding, both direct and indirect, could be higher, alleges Tapan Sen, a Rajya Sabha member from West Bengal.
Other than direct investment Generali, there are foreign companies which hold stakes in Biyani companies which at an indirect level is higher than permitted, Sen wrote to Finance Minister P Chidambaram, according to a copy of the letter available with ET.
“The shareholding in our Company is being wrongly scrutinised,” said Future Generali in an e-mail response.”The process of forming an insurance company is rigorous and strictly administered by the Irda.
The shareholding of Future Generali ( India Life Insurance Company Limited) has been duly approved by the regulator and there has been no change in its shareholding ratio since inception. All relevant regulations have been duly observed in this regard and there is no breach of FDI Guidelines.”