Etisalat DB gets two weeks to reply to RTIL plea on dues

NEW DELHI: Indian telecoms tribunal has given Etisalat DB two weeks to reply to Reliance Infratel’s plea for recovering outstanding dues from the telco, failing which it may have to pay a fine.

The Telecom Disputes Settlement and Appellate Tribunal will hear the matter on May 8 along with a similar complaint against S Tel.

Reliance Infratel or RITL, a subsidiary of India’s second largest telco by subscribers Reliance Communications, had moved the TDSAT in February against telecoms companies STel and Etisalat DB that had entered into agreements for leasing RITL’s network infrastructure for 10 years.

RITL wants to recover Rs 1,200 crore from Etisalat DB and around Rs 70 crore from S Tel as outstanding dues. Both companies have begun winding up operations after the Supreme Court cancelled 122 mobile permits of eight companies issued in 2008, including those belonging these telcos.

UAE-based Etisalat, which held 45% in a joint venture with DB Group, announced its exit from India after permits in 15 circles were annulled. It wrote off the value of its Indian operations – around $827 million – by way of an impairment charge following the order and began legal proceedings against the Indian promoters for fraud and misrepresentation.