DB Realty distances itself from Etisalat DB

Written by: Pti
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New Delhi, Feb 11 (PTI) Facing the heat after the arrestof its Managing Director Shahid Balwa, DB Realty today soughtto downplay its relations with Etisalat DB Telecom companybut maintained that it was not looking for any restructuringof the ownership at this stage.

"First of all, I would like to clarify one thing that isDB Realty and ETISALAT DB have no connection," Vinod Goenka,the other Managing Director of the Rs 3,200-crore real estatefirm said.

"There is no share holding of DB Realty in Etisalat DBbarring the investments (in Swan Telecom) which are made byShahid and me in our personal capacity. There is no otherconnection between the two companies. This I must clarify toeveryone," he said.

Balwa was arrested after he ignored CBI summon on twooccasions. He has since been brought to the national capitalfor being confronted with former Telecom Minister A Raja,who is in CBI custody since February 2.

According to the CBI FIR, Swan Telecom, which was beingpromoted by Balwa, was alloted UAS licences for 13 circles forRs 1,537 crore and it sold 45 per cent of shares beforeroll-out to UAE-based Etislat for Rs 4,200 crore.

Asked whether he was looking for restructuring the firmincluding the ownership, Goenka said the company is notlooking at changing the shareholding of the company. "It istoo soon to take that call.

"Shahid and me were managing jointly, we shared allinformation. There is no gap as far as the information isconcerned. As soon as this happened (arrest of Balwa), I havetaken over and now I am in the driver seat," Goenka said.

Noting that the company has not received any cancellationfrom customers following arrest made by CBI, he said: "It isjust that I will be in the driver''s seat as far as themanagement is concerned and we are not looking at changing theshareholding of the company".

On the company''s performance, he said it is expectinghighest-ever sales bookings of Rs 3,200 crore this fiscal.

"After last quarter, our company''s debts are extremely low. Wehave only Rs 380 crore of debt on the balance sheet with thenet worth of Rs 3,200 crore," he said.

Attempting to put speculation at rest about the fundingof its projects, Goenka said, "PSU banks will definitely applytheir minds. From private banks like HDFC Bank, ICICI Bank andAxis Bank, we should not have a problem in constructionfinance," Goenka added.

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