Unitech moves CLB seeking observer for Uninor's AGM

Unitech and its associate firms today moved the Company Law Board (CLB) requesting it to appoint independent observer for the board meeting of its telecom JV Unitech Wireless on December 8 and allowing the video recording of the event.

CLB has directed Norwegian telecom firm Telenor and its JV partner Unitech Wireless to file their replies by Saturday. It has also directed Unitech to file rejoinder over it by Monday morning.

CLB has posted the matter on December 5 for hearing and said that it would decide on Unitech's plea on that day.

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

On November 18, CLB had appointed an independent observer for the AGM of Unitech Wireless and directed for a video recording after observing that there was a conflict between the real estate major Unitech and Telenor.

Telenor Asia holds a 67.25% stake in Unitech Wireless (which offers services under the Uninor brand), while Unitech holds 32.75% stake through associate firms.

Unitech dragged Telenor to CLB alleging mismanagement in operations of the JV, saying that the Norwegian firm and its key executives had failed to obtain project finance for Uninor when it was available.

The partners' spat over a rights issue has also reached the courts and the companies are believed to be involved in arbitration proceedings in Singapore to resolve the matter.

Through the rights issue, shares are offered to existing shareholders in proportion to their holding, respecting their preemption rights, for raising funds.

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.