UAE-based Etisalat has said that its Indian unit will challenge the charges laid against it in the 2G spectrum allocation case in India. The company's India's unit, Etisalat DB has been named in the case involving allocation of 2G licence in January 2008.

"Etisalat would like to inform you that on October 22nd, 2011, charges were framed against Swan Telecom, in which Etisalat holds 44.7 per cent, and 16 other parties, by the Court of Special Judge (CBI) in relation to the allocation of 2G licences which transpired in January 2008," Etisalat acting group CFO, Oussama El Rifai said in a statement.

The company said that the events happened one year before Etisalat's investment in Swan, which was later re-named EDB. It clarified that it did not know about any wrongdoing in the application of spectrum and was not involved in it in any way.

The company also said that the licence application was handled by the promoters of Swan Telecom, who then approached Etisalat through an investment bank offering an investment opportunity. Etisalat said that it will continue to assists the Indian investigating agencies in the case.

The company and its advisers conducted their own investigations and found no wrongdoing. The promoters of Swan had made assurances to Etisalat that the licenses were issued in accordance with the laws and regulations of India.

"Etisalat will, of course, look to its remedies against third parties at the appropriate time in order to protect its investment and rights," the statement added.