In continuation of the Unitech-Telenor issue, both companies reportedly handed each other their respective proposals pertaining to the stake dispute, say news reports.

This was carried out before the chairman of the Company Law Board (CLB), who also asked both companies to continue their negotiations.

Prior to this, CLB had asked Unitech to take a decision pertaining to both the entity?s stake in Uninor.

Unitech had to decide if it wants to buy out Telenor?s stake or sell its stake to the Norwegian company.

Prior to this, CLB had returned both companies? petitions pertaining to their disagreement in the joint venture.

It is believed that the petition contained certain technical errors. Thereafter, CLB asked the companies to resolve the matter on their own.

Both companies had filed petitions before the CLB to remove each other’s representatives from Uninor. Telenor had requested for the exclusion of Unitech’s managing director and two other nominees from the company management and administrative affairs, whereas, Unitech had requested the barring of the transfer of Uninor?s assets to other company without its consent.

Prior to this, Telenor sent an indemnity notice to Unitech, asking it to reimburse the financial implications of losing its telecom licence in the country.

Further, Telenor reportedly began the process of roping in a new partner to continue its operations in India. The company hopes to conclude this process before the spectrum auctions.

It is believed that the partner entity will hold 26 per cent stake in the resulting joint venture, as per the country?s foreign direct investment policy.

Uninor was one of the players affected by the SC?s decision of cancelling 122 mobile licences issued in 2008. The development makes a sharp dent in an already tense relationship between the two partners over the rights issue.

In January 2012, Telenor valued its Indian operations at about Rs 6 billion, escalating the conflict with Unitech, which did not agree with the assessment. Unitech has also offered to buy out Telenor’s 67.25 per cent stake.

Telenor had paid Rs 61 billion to buy 67.25 stake in Uninor in 2009. It subsequently invested another Rs 80 billion into the business.