Etisalat,whose name has figured in the 2G spectrum scam,is in for yet another around of trouble as its partner in India,DB Group,has moved the Company Law Board (CLB) alleging failure on part of the UAE- based telecom company to perform certain obligations. In its complaint to CLB on Tuesday,DB has said Etisalat,which had offered its experience and expertise to the Indian joint venture - Etisalat DB Telecom - has failed to perform certain obligations. Etisalat,after conducting a detailed due diligence,had invested in the JV and offered experience and expertise as an international telecom operator by undertaking certain obligations under a Shareholders Agreement and a Management Services Agreement,DB spokesperson said in a statement here. "Etisalat was given operational management of the Indian joint venture in anticipation of Etisalat performing its obligations," it said. "The CLB proceedings have been filed as Etisalat has failed to perform its obligations and manage the joint venture in the manner represented by them and,prior to the proceedings relating to issue of licences being initiated and thereafter,the joint venture hasn't performed as represented by Etisalat," the spokesperson said. However,in the statement,DB has clarified that the dispute before the CLB was completely independent of the proceedings related to issue of (telecom) licenses. "These proceedings are separately defended," the spokesperson said. The complaint comes within few days of the Enforcement Directorate (ED) slapping a massive fine of Rs 7,100 crore on Etisalat DB for alleged violations of foreign direct investment norms in the telecom sector.
