Norway based telecom operator Telenor has sought indemnity and compensation from the Indian partner, Unitech, for damages caused to their mobile venture, Uninor, because of the recent Supreme Court (SC) judgement. Further, it has been reported that the company would soon start the process of looking for a new Indian partner.
Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of licences and is seeking compensation for all investment, guarantees and damages caused by the SC order. The Group stated that it had bought a stake in the company well after licences had been issued and it had no role in the controversial sale.
However, Unitech has stated that there was no breach of warranties on its part and it will contest any demand for compensation.
It added that the SC in its verdict has raised multiple questions on the government policy which in no manner can be considered as breach of warranties on the part of Unitech limited.
Further, Unitech has said that Telenor could at best claim damages from the government under the investment bilateral treaty.
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.
Last month, 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.
