UAE-based Etisalat on Monday said it had started proceedings for winding up operations of its Indian venture, but it was not clear if its Indian partners Shahid Balwa and Vinod Goenka had consented to the move.
Following the Supreme Court order cancelling its 13 licences last month, Etisalat had decided to shut down Etisalat DB Telecom (formerly Swan Telecom), affecting over 16.70 lakh mobile subscribers.
“Recent events have led to a complete breakdown in the relationship between Etisalat and its Indian partners, Mr. Balwa and Mr. Goenka, who face various criminal charges of corruption associated with Swan's acquisition of its UAS licences,” Etisalat said in a statement.
ADVERTISEMENT
It added that the company was “completely unaware of any issues or risks associated with the licences,” which were already owned by Swan when it made its investment.
Since then, Etisalat has sued Mr. Balwa, Mr. Goenka and Majestic Infracon Pvt. Ltd. (formerly Tiger Trustees Pvt. Ltd.) for fraud and misrepresentation associated with soliciting Etisalat's investment in Swan.