Emirates Telecommunications Corporation (Etisalat) on Thursday said that it has begun legal proceedings against promoters of Swan Telecom -Shahid Balwa, Vinod Goenka and Majestic Infracon Pvt Ltd- in the Bombay High Court for alleged fraud and misrepresentation.

“Mr Balwa, Mr Goenka and Majestic Infracon Pvt Ltd were responsible for Swan at that time and for subsequently marketing the investment opportunity to Etisalat,” Etisalat said in a statement.

“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,” Etisalat said.

“Etisalat is 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. Balwa, Goenka and Majestic Infracon Pvt Ltd were responsible for Swan at that time and for subsequently marketing the investment opportunity to Etisalat,” it said.

Goenka, Balwa and Majestic Infracon in a joint statement however said that that no notice of demand or suit papers have been received bythem. “There is no wrongdoing by us or our directors. We had filed a case for mismanagement in the CLB against Etisalat which was in management control of the JV (joint venture) company. This was withdrawn because in discussions they said they would run the JV properly which was not done.” “Unlike other similar JVs which built a business and revenue, our JV went nowhere under Etisalat management. The JV company is also facing FEMA proceedings for the investments by Etisalat. Etisalat will be held responsible for their wrongful acts,” the statement said.

DB Realty said the company “is in the business of real estate development and has no direct or indirect shareholding in Etisalat DB.”