Etisalat's mismanagement costed JV Rs 800cr: DB tells CLB

The DB Group may have told the Company Law Board that Etisalat's mismanagement resulted in their joint venture losing about Rs 800 crore and a crucial contract with Tech Mahindra has been lost as well.

The DB Group in its plea has all this while tried to indicate that it was Etisalat that was in charge of affairs as far as the JV is concerned. Now, sources tell CNBC-TV18's Ashwin Mohan that their plea says that according to the shareholder agreement there is a clause according to which DB and its representatives would not be deemed or named as a promoter of the JV. They also say in their plea that as far as responsibility of day-to-day management of JV is concerned that rested with Etisalat. Along with this, all financial authority and the authority to operate the bank accounts of the JV also rested with Etisalat. All this clearly indicates that Etisalat was the boss as far as JV is concerned. The group has also mentioned in this plea that because of Etisalat's alleged operation mismanagement losses worth Rs 800 crore were caused to the JV. The plea also says that the term loans rose by Rs 780 crore and the net current assets depleted by Rs 300 crore. Significantly, the plea also tells the Company Law Board that Etisalat in fact had breached the JV