Estisalat trashes DB Group claims at CLB

Emirates Telecom Corp of UAE, the parent company of Etisalat, today termed the allegations its troubled partner DB Group presented at the CLB as "baseless and a cynical move to shift attention away from their own situation and to disrupt the proper running of Etisalat DB."

"The proceedings served on Etisalat DB by Majestic and Shahid Balwa (the jailed promoter of DB Group) are wholly baseless. This is 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," the UAE company said in a release today.
The DB Group had yesterday moved the Company Law Board (CLB) alleging failure of Etisalat, its partner in the joint venture Etisalat DB Telecom, to perform certain obligations.
"Etisalat was given operational management of Etisalat DB Telecom in anticipation of Etisalat performing its obligations. But the company has failed to perform its obligations, forcing us to move the CLB for remedial measures," a DB Group spokesperson had said in a statement.
The complaint came within a few days after the Enforcement Directorate slapping Rs 7,100 crore fine on Etisalat DB for alleged violations of Foreign Exchange Management Act as part of its ongoing probe into Rs 1.7-trillion 2G scam. The notice, also warned that the penalty would be three times more if DB Group failed to respond to the show cause within a month.
Majestic Infracon is controlled by DG Group and owns some 45.73% in Etisalat DB (formally Swan), has bought proceedings against Etisalat and various group companies before the CLB and various individual directors.
Etisalat owns some 44.73% of Etislat DB. Majestic previously owned around 90% of Swan when Balwa got 2G licences.
Etisalat claims that it has no role in the doomed 2G licensing process but was invited by Balwa after an extensive process involving leading investment banks to invest in Swan, which it had done nearly a year after the licences were awarded.