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Union Cabinet meets to decide on abolishing Foreign Investment Promotion Board

New Delhi: After CBI raided Former Union Finance Minister P. Chidambaram and his son Karti’s Residences and offices and filed FIR against the duo, Union Cabinet met on Wednesday to decide about abolishing Foreign Investment Promotion Board (FIPB) said reports.

The raids were conducted in connection with two cases against them in money laundering and illegally sanctioning FIPB approvals.

Arun Jaitley, Finance Minister while announcing the budget for the year said that to make India an easier place to do business, FDI reforms would include abolishing the FIPB. The FIPB falls under the Finance Ministry.

The FIPB is likely to be abolished within a month of the cabinet’s approval, said an NDTV report.

Relevant ministries and regulatory authorities would instead be given authority to approve or reject FDI proposals.

Companies seeking approval of their proposals will be asked to apply online through the website which would direct these applications to the concerned ministry said a report.

Chidambaram was alleged to use his position to illegally sanction FIPB approvals then. While the approval given by FIPB to the firm was to bring in four crores as FDI, a total of 350 crores was illegally brought in, as reported in DC.