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FINANCIAL NEWS
Batelco sues its former Indian partner for USD212m
01 Sep 2014
(MENAFN) Bahraini Batelco has decided to pursue its former Indian business partner for USD212 million it says he owes the company, even though he was declared bankrupt last week, Gulf News reported.
Chinnakannan Sivasankaran, the chairman of Chennai-based Siva, filed for bankruptcy after a British court ordered Siva and Sivasankaran to pay the money to Batelco’s wholly owned subsidiary BMIC earlier this year.
The money is related to their failed Indian joint venture when Siva sold a 43 per cent stake in now closed mobile operator S Tel to Batelco in 2009.
However in 2012, S Tel’s licenses were revoked as part of a wide corruption investigation affecting India’s mobile market that pre-dated Batelco’s investment.
Thus, Batelco sold the stake back to Siva according to the terms of their original agreement, but then sued its former partners when the money was not paid.
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