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FINANCIAL NEWS
Etisalat fights India corruption charges
13 Jul 2011
(MENAFN) Abu Dhabi-based telecom company Etisalat replied to their Indian joint venture (JV) partner, Majestic Infracon Private Limited Majestic’s claims against them, saying that the suit was a tactical distraction from the corruption charges facing Majestic, Arabian Business reported.
Etisalat’s Indian subsidiary, Etisalat DB, is under fire after Majestic filed a suit accusing Etisalat of operational mismanagement and not fulfilling its obligations, according to reports in the Indian media.
India’s Enforcement Directorate (ED), also issued Etisalat DB a fine of USD1.6 billion last week for fraud charges associated with the 2007/08 2G license giveaway scandal which may have cost India up to USD39 billion.
Etisalat denied any participation in the license controversy, saying that it was not a partner in the Indian telecommunications company at the time of the 2G issues.
Etisalat DB said that it would not leave India despite the scandal and still aimed to capture the country’s rapidly growing mobile phone market.
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