Etisalat's partner in India drops case over delays

Etisalat's joint-venture partner in India has dropped a petition filed over a delay in launching services.

Majestic Infracon Private, which owns 45.73 per cent of India's Etisalat DB, filed a case against Etisalat last month, according to the UAE operator.

Majestic is controlled by Shahid Balwa and Vinod Goenka, who are currently in jail facing charges of cheating, forgery and paying bribes to get licenses to offer telecom services in 2008, before Etisalat entered the Indian market.

The action by Majestic was over alleged "operational mismanagement" at the firm; Etisalat said the claim was "baseless".

Majestic has now dropped its case, according to filing by Etisalat to the Abu Dhabi Securities Exchange.

"Majestic Infracon Private Limited has made an unconditional withdrawal of its Petitions against 'Etisalat' before India's Honorable Company Law Board," Etisalat said in the statement.

Etisalat acquired its stake in Swan Telecom for US$900 million (Dh3.3 billion) in March 2009. The company was later renamed Etisalat DB.

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