Contest Telenor's demand for compensation: Unitech

Last Updated: Thu, Feb 16, 2012 15:50 hrs

New Delhi, Feb 16 (IANS) A day after Oslo-based Telenor said it will seek indemnity and compensation following the cancellation of Uninor's 22 licenses by the Supreme Court, Unitech vowed to contest Telenor's demand.

"The Supreme Court has cancelled all the UAS licences and spectrum granted on and after Jan 10, 2008, and has raised multiple questions on the government policy which in no manner can be considered as breach of warranties on the part of Unitech Ltd," Unitech said in a statement.

It added that it will be incorrect to claim or even suggest that the cancellation of the licences demonstrates a breach of any warranties on the part of Unitech.

According to the firm, Telenor can at best invoke the provisions between the governments for protection of their investment in India. But they shall have no valid claim on Unitech.

Telenor group Wednesday issued a notice to its Indian partner Unitech to seek indemnity and compensation.

It said it will consider every option available to secure the continued successful development of its mobile services in India.

"It is Telenor Group's position that the strategic partnership with Unitech Ltd does not have a future, and it therefore will start the process of looking for a new Indian partner," Telenor said.

Telenor has invested Rs.61 billion (NOK 8.9 billion) for 67.25 percent ownership in Uninor, and additionally is also fully guaranteeing for Rs.80 billion (NOK 8.1 billion) of short-term debt.



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