The proceedings served on Etisalat DB today by Majestic and Mr Balwa are wholly baseless.
This is a cynical tactical move by parties charged with major corruption offences to shift attention away from their own situation and to disrupt the proper running of Etisalat DB to the detriment of its shareholders and customers.
Mr Balwa was the managing director of Etisalat DB until his recent resignation and Majestic has a larger shareholding than Etisalat.
The management of Etisalat DB has been made dramatically more difficult by Mr Balwa and Mr Goenka being in prison and by the approach taken by them to its business, not least in relation to the 2G license allegations when the company's defense appears to have been conducted to benefit their personal position.
Etisalat is investigating closely both the circumstance in which Mr Balwa persuaded it to invest in Swan (now Etisalat DB) - as a third party foreign investor, brought in after Mr Balwa and Swan had obtained the licenses - and also Mr Balwa's stewardship of the company and its assets.
-Ends-
"Majestic Infracon Private Limited, a company controlled by Mr Balwa and Mr Goenka, which owns some 45.73% of Etisalat DB (formally Swan), has bought proceedings against Etisalat and various group companies before the Company Law Board in India and various individual directors.
Etisalat owns some 44.73% of Etislat DB. Majestic previously owned some 90% of Swan during the period when Mr Balwa managed a process whereby it was awarded 2G licenses. Etisalat had no involvement in that license process but was invited by Mr Balwa, after an extensive process involving leading investment banks, to invest in Swan, which it did nearly a year after the licenses had been awarded.
The Company Law Board in India has certain powers to regulate Indian companies. The lengthy application reviews the recent company history of Etisalat DB. In essence, Majestic is seeking to increase its level of control over the affairs of Etisalat DB following various internal corporate developments. Etisalat will resolutely defend this action."
Etisalat Group Media Desk
Ms. Nahid Mudathir Hassan
Group Senior Manager Media Relations
Email: nahelsayed@etisalat.ae
Ph: ( +971)050 - 6006556
www.etisalat.ae
© Press Release 2011
