Malaysia’s Maxis Communications has reportedly denied charges brought against it by India’s Central Bureau of Investigation (CBI) concerning its 2006 acquisition of mobile operator Aircel.
Maxis, which has a 74% stake in India’s Aircel,…
Malaysia’s Maxis Communications has reportedly denied charges brought against it by India’s Central Bureau of Investigation (CBI) concerning its 2006 acquisition of mobile operator Aircel.
Maxis, which has a 74% stake in India’s Aircel, acknowledged that the CBI filed a charge sheet on 29 August in relation to the acquisition from Siva Ventures in a bourse filing.
In a related statement, the Malaysian operator said it has not been served with a copy of the charge sheet but “categorically denies all allegations of any wrongdoing”, Indian media reported.
Maxis reportedly noted that it will “vigorously” seek legal remedies available to defend itself including international investment treaty protections.
The charge sheet appears to be based on the findings of a CBI investigation into a complaint made by Siva Ventures chairman Chinnakannan Sivasankaran, Maxis was quoted as saying.
The CBI charge sheet states that its investigation found that the then Indian communications and IT minister, understood to be Dayanidhi Maran, “allegedly abused official position and constricted the business environment of Chennai-based private firm on frivolous grounds with an intent to force its exit from telecom business and its sale to Malaysia-based company”. The charge sheet also states that a UK-based company paid bribes totalling Rs7.42bn (US$122.7m) to a Chennai-based company.
In its statement, Maxis also reportedly denied CBI allegations that it received undue favours after Aircell changed hands, noting that it took almost a year for pending licences to be approved and a further year for start-up spectrum to be granted.
The charge sheet is against eight people and private companies in total.
Reports suggested in 2011 that Dayanidhi Maran forced the Aircel sale in return for the Malaysian company investing in Chennai-based satellite TV company Sun TV, which is owned by the former communications minister’s brother.
Maxis and Aircel were not immediately available for comment.
