Inditex’s proposal for a joint venture with Tata Group for its brand Massimo Dutti was deferred by the Foreign Investment Promotion Board (FIPB), the authority that clears foreign investment in India.

The FIPB said the investment was not being made by Inditex but by its 100%-owned subsidiary Zara Holdings BV, which is registered in the Netherlands.

One of the criteria for single brand retail is that the foreign investor has to be the owner of the brand.