CLB asks Unitech to buy out Telenor stake or exit

The Company Law Board (CLB) today asked real estate firm Unitech to decide by March 19 if it wants to buy its JV partner Telenor's stake in Uninor or sell its stake to the Norwegian telecom firm.

"You [Unitech] are given priority, whether you want to buy or sell [stake], you have to decide," CLB Chairman Justice BR Deshmukh told Unitech.

Counsel representing Unitech sought time for discussing the matter with the company management.

CLB, a quasi-judiciary body that rules on corporate matters, asked Unitech to inform its decision by 10.30 am on March 19, the next date for hearing.

Observing that there is hostility between the two joint venture partners, the CLB said, "I see no other solution... what can be done, you have to decide, whether you want to buy or sell out [stake]."

The counsel appearing for Unitech suggested that there could be other solutions, like a third party buying out stakes of both companies in Uninor.

On March 1, the CLB had returned the petitions of Telenor and Unitech on technical grounds and over certain deficiencies in filing.

Before returning the petitions, CLB Chairman Justice BR Deshmukh had asked the warring partners to mediate to resolve their differences but both the companies did not opt for it.