In continuation of the Unitech-Telenor dispute, the Company Law Board (CLB) has returned both companies? petitions pertaining to their disagreement in joint venture Uninor, say news reports.
It is believed that the petition contained certain technical errors. CLB has now 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.
