On December 23, the Central Bureau of Investigation of India said it has launched a probe on Anil Agarwal on claims that there were irregularities in his state's 26% stake purchase in Hindustan Zinc Ltd. Agarwal runs the biggest aluminum and copper producer in all of India. Hindustan produces zinc used in making chemicals and metals.

The latest probe by the chief investigating agency in India was seen as a risk to the government's efforts to revive stalled mining projects worth a collective $160 billion. According to Macquarie Capital Securities (India) Pvt.'s head of research Rakesh Arora, the newest probe, which was the third billionaire-led mining deal in the past six months, will reduce potential investment inflow just as Prime Minister Manmohan Singh's government is looking to revive economic growth and build infrastructure as India dropped tp a 10-year low. Arora added that the increased review of India's mining deals could divert investors' interest and fund mining projects elsewhere where regulatory risks are much lower.

In a phone interview, Arora stated, "This will certainly stall or at least delay investments in such projects as corporates will be wary of possible overhang following an approval. CBI has clearly overstepped with such probes and government should come out strongly to support its stimulus measures."

On the other hand, Bloomberg pointed out that the sentiment was opposite to that of the Federation of Indian Chambers of Commerce and Industry, which said earlier that hurdles to implement 255 stalled projects worth INR10 trillion or $161 billion had been started by accelerating approvals of such projects. Cabinet secretary Ajit Kumar Seth was cited by the group, which released a December 20 statement regarding the projects.

India's top investigative agency is looking into the privatization of Hindustan Zinc without parliament approval. The Sesa Sterlite Ltd-owned company was created in 1966 via an act, hence the much-needed approval, Bloomberg reasoned.