Etisalat has said that the DB Group filing legal proceedings over alleged mismanagement of their Indian joint venture, Etilsalat DB, was baseless.
The DB group had approached the Mumbai bench of the Company Law Board against Etisalat, alleging operational mismanagement and delays in rolling out services. The complaint was filed by DB group promoter firm Majestic Infracon.
In a statement, the telecom operator said, “The management of Etisalat DB has been made more difficult by Shahid Balwa and Vinod Goenka being in prison and by the approach taken by them to its business.?
The company added that it was closely examining the circumstances under which Balwa had persuaded it to invest in Swan (now Etisalat DB) as a third party foreign investor, brought in after Balwa and Swan had obtained the licences and also Balwa’s stewardship of the company and its assets.
Etisalat owns 44.73 per cent of Etisalat DB, while Majestic, a company controlled by Shahid Balwa and Vinod Goenka, owns 45.73 per cent.
