Birlas debunk Tata claim
The spat between the partners of telecom giant Idea turned murkier, with Birlas debunking Tatas' claim that as a group they are not promoters.india Updated: Mar 04, 2006 16:06 IST
The spat between the partners of telecom giant Idea turned murkier, with Birlas debunking the claims of Tatas that as a group they are not promoters and dubbing their termination notice as "illegal and malafide".
In the midst of the fight between the two oldest corporate houses, Department of Telecom has been sent some papers, including the Articles of Association of IDEA, which describes the founders as "the AT&T Wireless group, the AV Birla group and the Tata group."
These three groups were "represented pursuant to Section 4 of the shareholders agreement, through AT&T, Grasim and Tata Industries, the Article of Associations said.
Earlier, Tatas had criticised Birlas for making allegations against them and said that the reference to "Tata Group is misconceived and ill conceived" as none of the licences given to Idea recognised the concept of any "group".
Tatas at the same time served a termination notice on February 27 on Birlas for breach of the shareholders agreement and said that they would start buying out Birlas within 90 days.
Responding to it, the Birlas said the notice was "wrongful, illegal, malafide and designed to take advantage of your own wrongs" and warned Tatas against any attempt to transfer, directly or indirectly, shares of the group to any third party.