The Emirates Telecommunications Corporation (Etisalat) has issued proceedings in the Indian Courts against Balwa, Goenka and Majestic Infracon Pvt Ltd for fraud and misrepresentation.
Etisalatís case is that it was induced into its investment in the company that was then Swan, without any disclosure of the matters that are now alleged by the CBI and Supreme Court to have occurred in connection with the obtaining of 2G licences by EDB. Those events occurred a year before Etisalatís investment. Etisalat is facing very significant financial losses on its investment in EDB despite its having no involvement in the 2G license application or award process and being entirely innocent of any allegations relating to it. Balwa, Goenka and Majestic Infracon Pvt Ltd were responsible for Swan at that time and for subsequently marketing the investment opportunity to Etisalat.
Given the seriousness of the allegations, and in light of the Order on Charge and Supreme Court decision, Etisalat, as a leading international telecoms company with a high reputation for integrity and ethical behavior, has taken this action to protect its interests and those of its shareholders.