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Business News/ Industry / Telecom/  2G case: Maxis, UK’s Astro deny CBI charges against them
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2G case: Maxis, UK’s Astro deny CBI charges against them

Maxis says it will vigorously pursue all available legal remedies to defend itself and one of its directors

The CBI filed charges on Friday against former telecom minister Dayanidhi Maran, his brother Kalanithi Maran and Malaysian tycoon T. Ananda Krishnan over alleged graft to help Maxis take control of Aircel in 2006. Photo: Hindustan TimesPremium
The CBI filed charges on Friday against former telecom minister Dayanidhi Maran, his brother Kalanithi Maran and Malaysian tycoon T. Ananda Krishnan over alleged graft to help Maxis take control of Aircel in 2006. Photo: Hindustan Times

New Delhi: Maxis Communications Berhad (MCB) of Malaysia and Astro All Asia Networks Ltd (AAANL) of UK separately rejected on Tuesday the charges made against them by the Central Bureau of Investigation (CBI) probing the 2G spectrum scam.

A CBI chargesheet filed on 29 August said Dayanidhi Maran, while he was communications minister from 2004 to 2007, blocked approvals needed by telecom services provider Aircel Ltd and forced its owner C. Sivasankaran, to sell his company to Maxis. In return, Maxis group company AAANL invested around 629 crore in Sun Group, owned by Maran’s brother Kalanithi. Once the company changed hands, it is alleged, Aircel secured all necessary approvals.

“MCB categorically denies all allegations of any wrongdoings, and will pursue all legal remedies available, in order to defend itself and Mr Marshall, given the apparent lack of regard to overwhelmingly contradictory evidence, and the commencement of prosecution before the investigations are complete," the MCB statement said.

Apart from MCB and AAANL, the CBI chargesheet named seven others, including Dayanidhi Maran; his brother and Sun Group chairman Kalanithi Maran; T. Ananda Krishnan, Maxis owner; Augustus Ralph Marshall, a director in many of Krishnan’s companies; Chennai-based Sun Direct TV Pvt. Ltd, Mauritius-based South Asia Entertainment Holdings Ltd and J.S. Verma, former telecom secretary who passed away during the investigation.

In its statement, Maxis said it will also seek international investment treaty protections. Allegations of coercion made against it, the company said, were “untenable in law". MCB claimed it had extended all cooperation to CBI, with executives visiting CBI offices and voluntary submitting documents.

AAANL too refuted the allegations in a statement. “While AAANL has not been formally notified nor served with any charge sheet, AAANL has been advised that there is no basis for the allegations against it. AAANL categorically denies the allegations and considers the allegations to be totally unfounded and baseless," it said.

“AAANL is separate company from MCB. There is no cross-shareholding between MCB and AAANL, and AAANL’s investments are totally unconnected with MCB’s investments," it added. The statement also pointed out that CBI has said its investigation is incomplete as there is no evidence from Malaysia.

Interestingly, both MCB and AAANL had Usaha Tegas Berhad and the Bumiputera Foundation as major shareholders at the time of the deal in question, though Usaha Tegas is no more a shareholder in AAANL.

Both statements outlined the history of the transactions and how the companies had received approvals from their respective boards, shareholders and regulators. They also listed out their shareholding patterns and the details of the transaction that CBI has alleged are part of a quid pro quo.

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Published: 02 Sep 2014, 10:35 PM IST
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