DGFT blacklists Bharti Airtel, stock down over 4 percent

Shares of Bharti Airtel on Tuesday fell over 4 percent after the Directorate General of Foreign Trade (DGFT) blacklisted Sunil Mittal's telecom firm and put the company in the denied entity list, sources privy to the developments told CNBC-TV18.

The stock of the company closed 4.55 percent down at 490.90 on the BSE.

Bharti Airtel was put in this list due to non-fulfilment of export obligations under the Export Promotion Capital Goods (EPCG) scheme, where the import of capital goods is allowed at zero customs duty.

According to DGFT, the denied entity list is maintained due to the non-fulfilment of export obligations under various schemes. Also, the import-export license of Bharti Airtel has been stopped or has been terminated, according to multiple people familiar with the development said.

Following the move, the company will not be able to avail any export benefit or licence from the DGFT.

However, Bharti Airtel said it has not taken any such licence since April 2018 as there is no operational requirement for it. The company has already applied for the closure of its past licences that which were due and is awaiting a response for the approval of cancellation of these licenses from the concerned authorities, sources in the know told CNBC-TV18.