Norwegian telecomms operator Telenor, which faces the prospects of its Indian partnership losing 22 2G mobile licences thanks to the Supreme Court order, on Monday served a notice on the govt. , threatening international settlement and claiming damages of just about $14 bn. (around Rs 70,000 crore). You actually need a securities arbitration attorney in these case.
Telenor invoked the provisions of India's All-encompassing Business Cooperation Agreement (CECA) with Singapore to smack a notice looking for a solution from the government inside six months or drag the problem for an international settlement for failure to protect its investment.
Telenor invoked the provisions of India's All-encompassing Business Cooperation Agreement (CECA) with Singapore to smack a notice looking for a solution from the government inside six months or drag the problem for an international settlement for failure to protect its investment.
"The cancellation of licences, and the resultant loss of investments manufactured by Telenor Pacific Rim Pte L.T.D represent a breach of India's need under the CCEA. It's also possible that there might be a further breach of CCEA from the way in which these licences are now redistributed through auctions," Telenor related in its notice, which was sent to the Prime Minister's Office, the telecoms dep. and the corporate affairs ministry.
Telenor, which holds a 67% position in Unitech Wireless, is engaged in a separate legal battle with its Indian partner Unitech, and has published its call to start its hunt for another local ally. The Norwegian firm entered the Indian market through its Singapore arm.
In its notice, the telecomms firm announced that it invested in India based on licences issued by the government "in accordance with their own policy and process" and cited approvals from the Foreign Investment Promotion Board and the Cupboard Panel on Industrial Affairs (CCEA) to debate that it had complied with the laid down procedure. "Despite having no role to play either in the policy or in the midst thru with these licences were awarded, Telenor stands to lose its entire investment made in India," it said.
For the govt this is the second such notice after Sistema called upon the provisions of the India-Russia Investment Agreement two weeks gone. Telenor's notice coincides with Russian president Dmitri Medvadev's India visit this week where he's expected to broach the Sistema notice with P. M. Manmohan Singh.
"We can confirm that we informed the govt. of India of our intention to invoke the provisions of the CECA between India and Singapore. We are optimistic that it remains the government's intent to protect and encourage real foreign investment in the country. We are convinced that we will resolve this matter thru continuing dialogue with the governing body such that Telenor Group remains a pretty serious and long term partaker in the Indian market that brings the benefit of competition to the Indian consumers," a Telenor Group speaker claimed responding to a questionnaire from TOI.
Telenor, which holds a 67% position in Unitech Wireless, is engaged in a separate legal battle with its Indian partner Unitech, and has published its call to start its hunt for another local ally. The Norwegian firm entered the Indian market through its Singapore arm.
In its notice, the telecomms firm announced that it invested in India based on licences issued by the government "in accordance with their own policy and process" and cited approvals from the Foreign Investment Promotion Board and the Cupboard Panel on Industrial Affairs (CCEA) to debate that it had complied with the laid down procedure. "Despite having no role to play either in the policy or in the midst thru with these licences were awarded, Telenor stands to lose its entire investment made in India," it said.
For the govt this is the second such notice after Sistema called upon the provisions of the India-Russia Investment Agreement two weeks gone. Telenor's notice coincides with Russian president Dmitri Medvadev's India visit this week where he's expected to broach the Sistema notice with P. M. Manmohan Singh.
"We can confirm that we informed the govt. of India of our intention to invoke the provisions of the CECA between India and Singapore. We are optimistic that it remains the government's intent to protect and encourage real foreign investment in the country. We are convinced that we will resolve this matter thru continuing dialogue with the governing body such that Telenor Group remains a pretty serious and long term partaker in the Indian market that brings the benefit of competition to the Indian consumers," a Telenor Group speaker claimed responding to a questionnaire from TOI.
For the govt this is the second such notice after Sistema called upon the provisions of the India-Russia Investment Agreement two weeks gone. Telenor's notice coincides with Russian president Dmitri Medvadev's India visit this week where he's expected to broach the Sistema notice with P. M. Manmohan Singh.
"We can confirm that we informed the govt. of India of our intention to invoke the provisions of the CECA between India and Singapore. We are optimistic that it remains the government's intent to protect and encourage real foreign investment in the country. We are convinced that we will resolve this matter thru continuing dialogue with the governing body such that Telenor Group remains a pretty serious and long term partaker in the Indian market that brings the benefit of competition to the Indian consumers," a Telenor Group speaker claimed responding to a questionnaire from TOI.
Quoting clauses of the CCEA, the notice said the compensation has to be identical to the market valuation of the expropriated investment at the time of the choice, which in case of Unitech Wireless is Feb 2, the time when the Supreme Court cancelled 122 licences issued during ex-telecom minister A Raja's term. Until then Telenor claims to have invested close to $14 bill in its Indian operations.
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"We can confirm that we informed the govt. of India of our intention to invoke the provisions of the CECA between India and Singapore. We are optimistic that it remains the government's intent to protect and encourage real foreign investment in the country. We are convinced that we will resolve this matter thru continuing dialogue with the governing body such that Telenor Group remains a pretty serious and long term partaker in the Indian market that brings the benefit of competition to the Indian consumers," a Telenor Group speaker claimed responding to a questionnaire from TOI.
Quoting clauses of the CCEA, the notice said the compensation has to be identical to the market valuation of the expropriated investment at the time of the choice, which in case of Unitech Wireless is Feb 2, the time when the Supreme Court cancelled 122 licences issued during ex-telecom minister A Raja's term. Until then Telenor claims to have invested close to $14 bill in its Indian operations.
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These article is all about ponzi schemes and finra lawyers . The writer is Alfred Arnibal.