Malaysian telecom operator Maxis Communications Berhad on Tuesday dismissed allegations against it made by the Central Bureau of Investigation (CBI) in the case relating to Aircel and said it will explore all legal options, including protection under the bilateral investment treaty.
In a statement issued to the press, the company said that the CBI had ignored its numerous representations and had filed the charge sheet without completing the investigations. “Maxis Communications Berhad denies and rejects any allegation of wrongdoing in this matter. Maxis firmly believes that the allegations are unfounded and the charge sheet has been filed without any basis,” the statement said.
According to media reports, the CBI has charge sheeted former telecom minister Dayanithi Maran for allegedly forcing the then promoter of Aircel, C Sivasankaran, to sell stake to Malaysian company Maxis. The charge sheet also names Maxis’ owner T Ananda Krishnan besides Maran’s brother and Chairman of the Sun Network Kalanithi Maran, among others.
The CBI has alleged that as quid pro quo, Astro All Asia Networks paid illegal gratification to Kalanithi Maran’s Sun Direct TV.
In a separate statement, Astro All Asia Networks denied the allegations and said that investments were publicly disclosed transactions. “The allegations are unsubstantiated and questions corporate governance standards in both India and Malaysia by suggesting that a publicly listed company monitored by regulators could make such investments so as to benefit a wholly separate company that was also publicly listed,” Astro said.
Astro said that it was a separate company from Maxis and there is no cross-shareholding between the two companies.
“The CBI’s decision to file charge sheets in these circumstances when investigations are still incomplete violates the principle that investigations must be conducted fairly and thoroughly before reaching any conclusion and also does not accord with the standard of fair and equitable treatment to which Astro as an investor in India is entitled under international law and India’s treaty obligations,” the statement added.