In a written reply to the Lok Sabha, Namo Narain Meena, Minister of State for Finance said that Loop Telecom?s investors, Capital Global and Kaif Investment, have sent a notice to the government, say news reports.
The issue pertains to 21 of Loop Telecom?s licences being cancelled by the Supreme Court as part of its verdict in the 2G spectrum case.
Prior to this, it was reported that the company had begun the process of exiting the Indian telecom sector.
After the Supreme Court cancelled the licences, the operator issued a statement saying that was not involved with, and did not benefit from the impugned changes in government policy. It added that it did not sell any equity nor did it profit from grant of license.
Thereafter, the company has announced that it is in the process of shutting down its Indian operations. Prior to this, it had already issued a notice to its users, requesting them to shift operators via mobile number portability.
As per news reports, it has informed its employees of its decision and has begun issuing termination notices.
Now, the operator?s investors have reportedly invoked the Bilateral Investment Promotion and Protection Agreement.
The agreement applies to all investments made by companies from both countries in the other, which are accepted in accordance with the laws and regulations of the countries where invested.
