CLB disposes of Unitech plea to appoint independent observer

The Company Law Board has disposed off Unitech's plea to appoint an independent observer for the board meeting of telecom JV Unitech Wireless on December 8.

During the proceedings, counsel appearing for both the sides informed the CLB that the high court had already appointed an observer for the upcoming board meeting.

Justice Manmohan of the company bench of the high court had las week appointed S Gupta as observer for the upcoming board meeting Unitech Wireless on a petition filed by Unitech Wireless.

Earlier on November 18 CLB had appointed an independent observer for the AGM of Unitech Wireless and directed for video recording after observing that there was a conflict between the joint venture (JV) partners. This order was challenged in the high court.

Norwegian company Telenor holds a 67.25 per cent stake in Unitech Wireless (which offers telecom services under the Uninor brand), while real estate major Unitech holds 32.75 per cent stake in the JV.

Unitech and Telenor have been involved in a public spat for months over several issues, including management and funding of JV.

Unitech dragged Telenor to CLB alleging mismanagement in operations of the JV.

The JV partners also differed on the proposed Rs 8,250- crore rights issue.

Uninor holds a pan-India licence to offer mobile services in 22 Indian circles. Its services are available in 13 circles like UP (West), UP (East), Bihar, West Bengal and Tamil Nadu, but it is yet to receive spectrum in some circles, including Delhi and J&K.