According to Sistema Shyam Teleservices Limited (SSTL), its joint venture partner Sistema can initiate legal proceedings against the Indian government under the Bilateral Investment Promotion and Protection Agreement (BIPA) to protect its investment in the country’s telecom space, say news reports.
SSTL’s licences were amongst 122 2G licenses cancelled by the Supreme Court order earlier this year. Thereafter, Sistema, which holds about 56.68 per cent stake in SSTL, served a legal notice to the government seeking damages from it under BIPA. However, the company could not start the proceedings against the government earlier than six months after serving the notice.
Meanwhile, the government was attempting to amicably resolve the issue with the operator by August 28, 2012.
However, six months lapsed and there was no sign of an amicable solution to the issue. Therefore, Sistema plans to start legal proceedings against the government under BIPA.
