Unitech to contest Telenor’s demand for compensation
Date: Feb 16, 2012
New Delhi, February 16, 2012
day after its Norwegian partner Telenor sought indemnities for cancellation of telecom licence, real estate firm Unitech on Thursday said there was no breach of warranties on its part and it will contest any demand for compensation.
“The Supreme Court has cancelled all the UAS licences and spectrum granted on and after January 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 limited,” Unitech statement said.
It added that it will therefore be incorrect to claim or even suggest that the cancellation of the UAS Licences by the Supreme Court demonstrates a breach of any warranties on the part of Unitech.
“At best, Telenor group can invoke the provisions between the governments for protection of their investment in India, but they shall have no valid claim on Unitech and any demand from Unitech shall be contested,” Unitech said.
On Wednesday, Norwegian telecom major blamed its Indian partner Unitech for the cancellation of 22 licences held by their telecom joint venture Uninor and sought “indemnity and compensation” from it.
“Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of licences — seeking compensation for all investment, guarantees and damages caused by the Supreme Court order,” Telenor said in a statement.
The Norwegian firm also said that it is looking for new Indian partner to continue its business in India.
“It is Telenor Group’s position that the strategic partnership with Unitech does not have a future and it, therefore, will start looking for a new Indian partner,” Telenor said.
Telenor Group has invested over Rs 6,100 crore in equity and over Rs 8,000 crore in corporate guarantees as a foreign investor and the company holds 67.25 stake in Unitech Wireless, which owns brand Uninor.
Shares of Unitech were trading at Rs 32.25, up by 1.57 per cent, at the BSE in afternoon trade.
