NEWS| KFC, Pizza Hut's parent co Yum under ED's lens

US-based Yum Restaurants, which owns the franchise of KFC and Pizza Hut in India, has come under the Enforcement Directorate's (ED) scrutiny for allegedly failing to bring in Rs 390 crore ($80 million) foreign investment in the country after getting the government approval.

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Yum was granted permission by the Foreign Investment Promotion Board (FIPB) in 1993 where it had said it will bring in 80 million dollars in India in two years in two tranches of 40 million dollars each. Besides, it had also said that its business in India would be "foreign exchange-neutral".

The company, however, brought in $35.5 million only, allegedly leading to a violation of the Foreign Exchange Management Act, and also the FIPB licence agreements, sources said.

he authority has sent show-cause notices to the company on alleged FEMA violations involving more than Rs 668 crore, sources said.



source | http://www.business-standard.com/