GMR Group Friday said it had set up a few companies in various overseas jurisdictions for tax efficiency among other reasons. It had disclosed the details in its balance sheet and also informed various Indian regulators, the group said in a statement.
“GMR Group undertook several world-class infrastructure projects across the globe, mainly in the airport sector viz Sabiha Gokcen Airport, Male Airport, Cebu Airport, Clark Airport, Crete Airport, Medan Airport, besides a few projects in the energy sector,” it said.
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“GMR Group partnered with a few multinational companies, including government companies, in execution of projects with considerable capital contribution. We set up a few companies in various overseas jurisdictions to meet operational requirements, tax efficiency, ease of investment, basing (sic) on the expert advice of the best international consultants and as per the practice followed by several corporates. ICIJ query on this aspect was adequately addressed by us earlier in the year 2017,” it said. “On divestment of our stake in an energy company based out of the USA, part of the balance capital was kept in the Euro Bank account of GMR Infra Cyprus (USD 140 million). These funds were blocked by that government due to the capital controls imposed by the country in March, 2013, which was reported in The Indian Express in June, 2013. Post relaxation of these controls, GMR group (has) withdrawn the funds for investment in overseas projects as well as in India appropriately,” it said.
“Crossridge availed a credit facility from Euro Bank during the year 2013 for investment purposes. GMR group has not extended any pledge/lien on the deposits held in Euro Bank in favour of credit facilities by other companies (sic). This was communicated by the Euro Bank officially to the auditors of the group in India,” it said. “Crossridge and Interzone are subsidiaries of GHML (GMR Holdings Mauritius Ltd) and there were outstanding receivables by Interzone from GHML. Hence, GHML directly remitted the money a couple of times to Crossridge on behalf of Interzone in discharge of its outstandings to Interzone. Crossridge and Interzone were wound up along with many other overseas companies as part of a prudent review mechanism to rationalise the corporate structure.”
“All above information was discussed in Board meetings and disclosed in balance sheets. All overseas companies were reported to regulatory authorities in India, including RBI, and abroad,” it said.