DB Group moves CLB against Etisalat: Sources

The DB Group has dragged Etisalat to the Company Law Board alleging operational mismanagement, reports CNBC-TV18's Ashwin Mohan quoting sources. The litigation also blames Etisalat for delay in rolling out the telecom business.

Sources indicate that the petition has been filed by a DB Group promoter company Magestic InfraCon under Section 397 and 398 of the Companies Act. It states that Etisalat was not complying with its obligations to the DB-Etisalat joint venture. The group now seeks CLB to direct Etisalat to comply with its contractual obligations. The group wants relief to stop alleged mismanagement and get the JV back on track. The case, sources say, will next come up for hearing on July 14. Do Read: Etisalat eyes stake hike in Indian JV