According to UAE-based Etisalat, Majestic Infracon, the promoter firm of DB Group, has withdrawn petitions filed against the company before India’s Company Law Board. Etisalat announced the end of the dispute in a filing with the Abu Dhabi Securities…
According to UAE-based Etisalat, Majestic Infracon, the promoter firm of DB Group, has withdrawn petitions filed against the company before India’s Company Law Board. Etisalat announced the end of the dispute in a filing with the Abu Dhabi Securities Exchange.
Etisalat and conglomerate DB group together own Etisalat DB, an Indian cellco.
In a statement to TelecomFinance, the company added that “Etisalat welcomes this decision and believes it is in the best interest of Etisalat DB”, but did not comment further.
In mid-July, the DB Group had reportedly filed a complaint with the board, arguing that Etisalat was responsible for operational mismanagement and for the delay in rolling out network services.
Subsequently, Etisalat released a statement, describing the proceedings against Etisalat DB by Majestic Infracon and Etisalat DB’s former vice chairman Shahid Balwa as “baseless”.
For several months now, Etisalat DB has been under fire amid the scam. In March this year, Balwa resigned following his arrest over allegations of wrongdoing in the 2G scam scandal back in 2008.
That same month, 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, in early July, it was reported that Etisalat DB may be imposed a US$1.6bn fine for alleged breach of foreign direct investment (FDI) rules.