Relationship between Telenor and Unitech turns sour, both parties seek damages

Posted By: Religare
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Relationship between Telenor and Unitech turns sour
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The telecom duel between Telenor and Unitech gets a step closer to being ugly. Earlier,Telenor, a Norway based company, was stripped off its license by the Supreme Court of India.

The company now wants to get out of its joint venture partner, Unitech and has started looking for a new partner.

After Supreme Court's decision that the 2G auctions were underpriced, Telenor, which operated with Unitech under the brand Uninor, was asked to let go of its 22 licenses.

Telenor has said that it holds Unitech responsible for the violation of warranties related to the cancellation and will now be looking for compensation for all investment, guarantees and damages caused by the court's decision.

In 2009, Telenor had invested Rs 6,100 crore to buy 67.25 per cent stake in Unitech Wireless and renamed it to Uninor. The joint venture has approximately 40 million users in India.

Unitech, in its clarification filed to Bombay Stock Exchange,has said that it disagrees with Telenor and its claims and is looking to take appropriate legal action for the damages caused to Unitech Group from the breach of the confidentiality obligation by Telenor Group.

Read more about: telecom, telenor, unitech, 2g
Story first published: Thursday, February 16, 2012, 13:33 [IST]
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