UAE-based operator Etisalat has started proceedings in the Indian courts against Balwa, Goenka and Majestic Infracon for fraud and misrepresentation. The operator said its case is that it was induced into its investment in the company Etisalat DB, then known as Swan Telecom, without any disclosure of the matters that are now alleged by India's Central Bureau of Investigation and the Supreme Court to have occurred in connection with the acquisition of 2G licences by Swan. According to Etisalat, those events occurred a year before Etisalat's investment. Etisalat said it's facing very significant financial losses on its investment in EDB despite its having no involvement in the 2G licence application or award process and being entirely innocent of any allegations relating to it. It said Balwa, Goenka and Majestic Infracon 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 Supreme Court decision cancelling Etisalat DB's licences, Etisalat said it took legal action to protect its interests and those of its shareholders.
