The DB Group has approached the Company Law Board (CLB), alleging failure of Etisalat, its partner in the joint venture Etisalat DB Telecom, to perform certain obligations.
In a statement, the DB Group said that after conducting due diligence, Etisalat had invested in the joint venture and had offered experience and expertise as an international telecom operator by undertaking certain obligations under a Shareholders Agreement and a Management Services Agreement.
It added that Etisalat was given operational management of the Indian joint venture, as it was expected to in carry out its obligations.
In the statement, DB has clarified that the dispute before the CLB was completely independent of the proceedings related to the issue of telecom licences.
This comes after the enforcement directorate imposed a Rs 71 billion penalty on Etisalat DB, for alleged violations of foreign direct investment norms in the telecom sector.
