Abu Dhabi-based Emirates Telecommunications Corp (
Etisalat ) on Tuesday said it has filed a lawsuit against the promoters of Swan Telecom (now Etislat DB) alleging fraud and misrepresentation.
Etislat in a press statement said it has filed the lawsuit against Shahid Balwa, Vinod Goenka and Majestic Infracon Private Ltd in the Bombay High Court.
The UAE-based firm in 2008 had paid $900 million for 45 per cent stake in Balwa-promoted Swan Telecom, which was later renamed Etislat DB (EDB).
"Etisalat's 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," the statement said.
"Those events occurred a year before Etisalat's 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," the company said.
Balwa, Goenka and Majestic Infracon, it said, were responsible for Swan at that time and for subsequently marketing the investment opportunity to Etisalat.
Etisalat had on Wednesday announced shutting of its India operations following the Supreme Court order cancelling telecom licenses allocated to EDB along with others in 2008.
The apex court had found fault with the government policy of allocating 122 telecom licenses on first-come-first-service basis.
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