The UAE’s Emirates Telecommunications Corporation (Etisalat) has decided to write off the value of its Indian subsidiary, Swan Telecom after the Supreme Court of India cancelled its licence on 2 February amid a corruption probe.

In a statement issued, Etisalat said it had booked an impairment charge of AED3bn ($827m) before federal royalties, against the full carrying value of goodwill for its Indian operations, which amounts to AED1.2bn. This pushed down its 2011 net profit by 23.4 per cent from AED7.63bn to AED5.84bn as a result.

The Indian court cancelled all 122 telecoms licences issued in January 2008 amid allegations of corruption and underselling.

“Etisalat expects the government of India to bring about a rapid and just solution and to fairly compensate investors,” read the statement.

Etisalat has a 45 per cent stake in Swan Telecom for which it paid $900m in September 2008.

The operator’s shares fell 2 per cent on 12 February.