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Telenor seeks compensation from Unitech

Telenor seeks compensation from Unitech

Telenor Group has issued a notice to its Indian partner, Unitech Limited, following the cancellation of Uninor's 22 licenses by the Supreme Court of India. The Norwegian company is also seeking a new partner for its mobile services business in India.

Norway-based Telenor Group on Wednesday issued a notice to its Indian partner Unitech Limited, seeking indemnity and compensation following the cancellation of Uninor's 22 licenses by the Supreme Court of India.

The Supreme Court of India on February 2 passed an order to revoke 122 licenses issued to all operators since January 2008.

Unitech Wireless, which owns the Uninor brand, is a joint venture between the Telenor Group and real estate company Unitech Ltd. Telenor Group has invested Rs 61 billion for 67.25 per cent ownership in Uninor.

Holding Unitech liable for the breach of warranties related to the cancellation of the licenses, Telenor said the court's decision refers to actions that happened prior to its entry into India.

Telenor Group also said that it will start looking for a new Indian partner.

Telenor Group has also made an indemnity claim against Unitech for the failure to obtain spectrum in the strategically critical Delhi circle.

"The legality and validity of the licenses was a fundamental term of the share subscription agreement between Telenor Group and Unitech Limited. We believe that the Supreme Court's cancellation of the Unified Access Service Licenses (UASL) conclusively demonstrates a clear breach of Unitech's warranties," said Pal Wien Espen, Group General Counsel, Telenor Group.

Separately, Uninor also said that it is considering moving a review petition in the apex court.