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The Government is reviewing foreign direct investment (FDI) in telecom after the Essar Group notified it of its Honk Kong partner Hutchinson selling a stake to Egypt based Orascom. The Egyptian company is known to have links in Pakistan and Bangladesh, which could have serious security implications for India. Currently, the country allows up to 74% FDI but also requires details of investors with more than 10% stake in any telecom venture. While the nature of “links in Pakistan” is not known, the Government is trying to determine if there are terrorist links to Orascom. Taliban and al Qaeda are known to have invested in trading front companies in United Arab Emirates and other West Asian nations. India’s most wanted man, Dawood Ibrahim, is known to have many binami investments all over the Muslim world. India and the Central Intelligence Agency (CIA) believe Ibrahim is in Pakistan—a charge that Pakistan denies.
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