Dhoots, part of the Videocon group, wants to buy out 36% of Nahata’s stake in Datacom Solutions, the all-India mobile licence holder. This is believed to be the reaction of Nahata’s threatening to go to court against Dhoots for violating in the shareholder’s agreement.

Nahata confirmed to Business Standard that no final decisions regarding the buy-outs have been taken and that he would reserve the right to legal recourse provided the dispute does not settle. Venugopal Dhoot, chairman of the Videocon group, denied to have had any discussions with Nahata.
             
Nahata holds 36% in Datacom through Jumbo Techno, a closely held company. A few months ago when the shareholding was being divided between Nahata and some other investors, Datacom received a mobile licence. It was then when disagreements arose between the two over investments in the company. The two partners agreed to subscribe to an initial equity capital of $35.3 million. Dhoots also agreed upon equity investments of around $1billion, the amount required to set up the network infrastructure.
             
As such he was not required to make such further investments, according to sources in Nahata’s camp. Jumbo alleged Videocon of saying it would not bring in more equity inspite offered a loan to finance the project. This issue acted as a bone of contention between the two. Though according to analysts the value of all-India GSM licences is $1-2 million, the valuation of Nahata’s stake is not clear.
             
Datacom Solutions interacted with Dubai-based Etisalat and Batelo of Bahrain. But no final deal has emerged. Had the dispute not arisen, the company could see its plans working out in operations in GS mobile services from August 15. X