Mahathir crony Ananda denies any wrongdoing in India

Billionaire tycoon Ananda Krishnan, long regarded in Malaysia as one of former premier Mahathir Mohamad's closest crony, has found himself in trouble in India. To many who have been watching the local economic scene where big business is often intertwined with politics, this is a deep irony.

Ananda, a 73-year-old Malaysian citizen born in Brickfields, is considered 'untouchable' in Malaysia due to his wealth and above all, his powerful connections. But in the land of his forefathers, the same 'immunity' appears to be somewhat lesser. This despite his consistent appearance on the Forbes list of the world's richest, which estimates his fortune at some US$10 billion.

Accused of bribing Indian telco minister?

Maxis Communications Bhd, a firm Ananda built from scratch, has denied its controlling shareholder was involved in any wrongdoing in the purchase of Aircel Ltd in India in 2006.

Ananda and Maxis senior executive Ralph Marshal are now part of a probe by India's Central Bureau of Investigation into claims that Dayandhi Maran, the country's Minister of Telecommunications between February 2004 and May 2007, had been involved in criminal conspiracy, fraud and corruption in granting telecommunications licenses to operations that may include Maxis.

In Malaysia, Maxis said in a statement that its takeover of Aircel was a commercial transaction, a transaction that agreed by a willing seller and a willing buyer, and Maxis has paid the price that is demanded by seller, Siva Ventures Limited (Siva).

Maxis further pointed out that it recently succeeded in defending an international arbitration proceeding against the former owner of the Aircel, Siva Venture. The Malayisan telco said it has yet to receive First Information Report (FIR), but understand that a few other parties have been accused of coercion and corruption allegations.

"Although disappointed with FIR filed, we still give full cooperation to the CBO because we are certain that the allegations are unfounded and untrue," the Maxis statement said.

Committed to Indian market

Maxis also said it remained committed to the telecommunications market in India in which it has invested more than USD 8 billion since taking over Aircel. Its customers have reached a total of more than 50 million people.

Meanwhile, a Dow Jones report quoting a spokesman for CBI, Dharini Misra, said in addition to suing Maran, it was also initiating formal investigations against Dayanidhi Maran’s brother, Kalanidhi, and Ananda.

CBI will also probe Sun TV, Astro All Asia Networks PLC, Maxis and Ralph Marshall, the spokesman said. If guilty, a minimum sentence of six months to five years in jail with a fine was the punishment.

Maran is the second federal minister who resigned in less than a year after the former Minister of Telecommunications, Andimuthu King was sued for their roles in the provision of second generations telecommunications services licenses.

Maran became the focus after local media reported that he, as a minister has given some advantage to the telecommunications company Aircel Ltd. which was not listed. CBI also told the Supreme Court that Maran has played a role in forcing the owner of Aircel to sell it to Maxis in 2006.

Aircel was owned by an investor C Sivasankaran, who could not be reached for comment.

Malaysia Chronicle