2G scam throws up differences among promoters

The ever-deeping 2G scam has thrown up the previously hidden tussle for control between Indian telecom operators and their foreign joint venture partners.

Previously swept under the mat, some of the disagreements are spilling out in either newspaper reports or even reaching the courts.

The recent spat between UAE-based Emirates Telecom Corp (Etisalat) and its Indian joint venture partner DB Group is the second such incident that has come to the fore. Their joint venture company, Etisalat DB Telecom India, is one of the firms embroiled in the 2G scam.

Earlier this week, DB Group moved India's Company Law Board (CLB), an independent quasi-judicial body with powers to look into teh conduct of companies, alleging that Etisalat had breached certain terms of the agreement.

Majestic Infracon, a firm controlled by DB Group, which owns around 45.73 per cent in Etisalat DB, has initiated CLB proceedings against Etisalat, its group companies and various directors.

"Etisalat was given operational management of Etisalat DB Telecom in anticipation of Etisalat performing its obligations. But the company has failed to perform its obligations, forcing us to move the CLB for remedial measures," a DB Group spokesperson said in a statement.