Kapil Sibal, Minister for Communications and IT has written to the Ministry of Law to be prepared for a legal battle with Russia-based telecom major Sistema over the cancellation of licences of Sistema Shyam TeleServices Ltimited (SSTL).
Sistema holds equity stake in SSTL which operates telecom services in the country under the brand name, MTS. Writing to Ashwani Kumar, Minister of Law, Sibal has said that Sistema could seek legal arbitration for which the government has to be prepared.
Earlier, Sistema had sent a legal notice regarding government invoking bilateral investment treaty signed between India and Russia. The company had set a deadline of August 28, 2012 for resolving the issues related to cancellation of licences following a Supreme Court order in February, 2012.
According to Sibal Sistema JSFC, Russia may seek arbitration, therefore it is important to take all requisite necessary measures like appointment of arbitrator, finalisation of legal team, firming up the stand of the government to meet any eventuality.
Sibal has asked the Ministry of Law to appoint a panel of arbitrators at the earliest to present India?s case in case Sistema goes to the international court.
Sistema has already filed a curative petition with the Supreme Court seeking a review of the court? earlier decision to cancel its licences.
