UAE-based telco Etisalat described the proceedings brought against Etisalat DB by Majestic Infracon and Shahid Balwa as “baseless” in a statement.
Etisalat DB is a joint venture between Etisalat and Indian conglomerate DB Group.
As reported Balwa…
UAE-based telco Etisalat described the proceedings brought against Etisalat DB by Majestic Infracon and Shahid Balwa as “baseless” in a statement.
Etisalat DB is a joint venture between Etisalat and Indian conglomerate DB Group.
As reported Balwa was Etisalat DB’s vice chairman before he resigned following his arrest over allegations of wrongdoing in the 2G scam scandal back in 2008, while Majestic Infracon is DB group’s promoter firm.
According to reports, the DB Group recently filed a complaint with India’s Company Law Board arguing that Etisalat was responsible for operational mismanagement and for the delay in rolling out network services.
For several months now, Etisalat DB has been under fire amid the scam.
In March, the Department of Telecommunications (DoT) reportedly sent notices to eight cellcos, including Etisalat DB, asking them to justify why their licences should not be cancelled after they failed to meet rollout obligations back in 2008.
These obligations include covering at least 10% of the district headquarters within 12 months of receiving licences.
In addition, a few days ago, it was reported that Etisalat DB may be imposed a US$1.6bn fine for alleged breach of foreign direct investment (FDI) rules, according to reports.
In a statement today, Etisalat wrote the proceedings were “a cynical tactical move by parties charged with major corruption offences to shift attention away from their own situation and to disrupt the proper running of Etisalat DB to the detriment of its shareholders and customers.
“Etisalat is investigating closely both the circumstance in which Mr Balwa persuaded it to invest in Swan (now Etisalat DB) – as a third party foreign investor, brought in after Mr Balwa and Swan had obtained the licenses – and also Mr Balwa’s stewardship of the company and its assets.”
