The Delhi High Court has given the Ministry of Home Affairs an extension until March 7, 2011 to explain why it opposed Etisalat DB?s request to increase investment in the country.
UAE-based Etisalat DB, earlier known as Swan Telecom, is currently facing a CBI probe for its role in the 2G spectrum issue. After obtaining a telecom licence and spectrum for Rs 15.30 billion, Swan had sold 45 per cent of its shareholding to Etisalat for Rs 45 billion.
Thereafter, the Foreign Investment Promotion Board (FIPB) had rejected Etisalat?s proposal to pump in additional investment of Rs 3.80 billion in the country, following objections raised by the Home Ministry.
The Home Ministry had informed the FIPB that Etisalat DB could not be granted security clearance on several grounds, including its presence in Pakistan and Afghanistan and attempt by Etisalat to mount telecom surveillance application software on Blackberry within UAE in 2009.
