Telecom major Bharti Airtel Ltd is being investigated under the provisions of Prevention of Money Laundering Act, 2002 (PMLA).
“The Directorate of Enforcement is investigating cases under the PMLA and Foreign Exchange Management Act, 1999 (FEMA) involving Bharti Airtel Ltd,” Mr S.S. Palanimanickam, Minister of State of Finance Ministry, said in the Rajya Sabha on Tuesday.
He however, did not give further details, saying, “it may not be in the interest of the ongoing investigations.”
Meanwhile, Bharti Airtel issued a statement saying it maintains the highest standards of corporate governance and regulatory compliance and has always complied with all norms.
“We have provided all relevant details asked by the authorities in this matter and will be happy to cooperate further, should the need arise,” its spokesperson said in the statement.
Reacting to this development, Bharti Airtel's share on the BSE fell by 1.28 per cent to Rs 303.50 from its previous close.
The company is also in trouble in Nigeria where it has its operations. The Nigeria Telecom Regulatory Authority on Monday fined its subsidiary – Airtel Nigeria - along with three other companies for providing poor services. The total fined amount tuned to $7.3 million with other companies including South Africa's MTN, Abu Dhabi's Etisalat and local company Globacom.