We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 17 Feb 2011 01:25 AM

Font Size

- Aa +

Abu Dhabi's Etisalat sees India backing down in licence row

India unit caught in corruption probe over whether licences were sold cheaply in return for kickbacks

Abu Dhabi's Etisalat sees India backing down in licence row
Etisalat has been caught up in the corruption probe into whether mobile phone licences were sold at below-market prices in return for kickbacks

Etisalat's Indian joint venture has responded to a request by India's government to show why it should keep its licence after a telecoms scandal, and expects no further action taken against it, the UAE firm said.

Etisalat DB, a joint venture of India's DB Group and Etisalat, has been caught up in the corruption probe into whether mobile phone licences and radio spectrum were sold at below-market prices in return for kickbacks.

Last November, India's telecoms ministry sent notices to five firms that were given 85 telecoms licences in 2008, asking why their licences should not be cancelled after a government auditor found they were not eligible for them.

"Etisalat DB has provided a complete response to their concerns and expects the Department of Telecommunications to withdraw the notices and refrain from taking any further action against Etisalat DB," the company said in an emailed statement.

Last week, the vice-chairman of Etisalat DB was arrested over allegations that two Indian firms got favourable treatment when 2G spectrum licences were awarded.

Etisalat, which owns an approximately 45 percent stake in the venture, has maintained that it bought the stake in the firm, then called Swan, after the licence had been applied for and granted.

 

Arabian Business: why we're going behind a paywall

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.