Tatas accuse Birlas of breaching Idea contract

“Aditya Birla Nuvo Ltd is simply raising shareholder grievances and seeking shareholder relief in a forum that is not meant to decide these issues,” Tata Industries MD, Kishore Chauker wrote to the DoT.

Last week, the Birlas had shot off two letters to the DoT saying that Tata’s investment in Idea Cellular is not complying with guidelines of DoT’s licensing policy. The Tatas now deny Birla’s charges.

“There has been no breach of promoter’s stake or substantial cross holding obligation contained in the pre-amendment Idea Cellular licence, which in any event is not any legal obligation that exists today,” it said.

The Tata communication follows a Birla group letter to DoT on February 22, seeking immediate exit of the Tatas from Idea. Both the Tatas and Birlas hold equal stake in Idea Cellular.

Chaukar also said that AVNL’s complaint was not maintainable at this stage, as Idea itself had sought DoT’s extension till June 30 with the full consent of the Birla group.

Tatas said the Birla group was in multiple breaches of shareholders’ agreement and two notices to this effect were already pending with them. “Indeed, this ABNL complaint is only an attempt to shift focus away from the real inter-shareholder issue,” he said in the 10-page letter to DoT Secretary.

The application for a unified licence in Mumbai circle by Aditya Birla group was a direct breach of shareholders’ agreement and the Tatas have already issued a breach notice to them, he said. “The continued maintenance of this application before the DoT is a continuing wrong. TIL reserves its right to take all contractual action as is permissible under the shareholder agreement and the law.”

The Tatas letter to DoT comes after the Birla group informed the government that their own telecom application for licence in Mumbai did not compete with Idea.