Telenor, Unitech move CLB against each other
The tussle between Telenor and Unitech Group over their Indian joint venture Uninor took a new turn today, with both the firms moving the Company Law Board (CLB) separately against each other for protection of their investments and rights.
“Telenor Group is voiding its partnership with Unitech on account of fraud and misrepresentation. On Friday, February 24, we moved the Company Law Board to prevent any wrongful obstruction of our effort to secure our investments and the welfare of Uninor’s 40 million customers, employees and partners,” Telenor said in a statement.
It had recently announced setting up of a new company for its telecom business in India following its decision to part ways with Unitech.
In a separate statement, Unitech said it has filed a fresh petition in CLB today to enforce its rights under the Articles of Uninor and to prevent Telenor from assuming full control over the business including assets of Uninor.
"Telenor is trying to rescind the shareholders’ agreement and annul the Articles of Uninor only to get out of certain protective provisions for the minority shareholders including the non-compete provision. Even prior to the Supreme Court's order on striking down the policy of the government of India with respect to the grant of UAS licences — Telenor has been pursuing the sole objective of pushing Unitech out of Uninor and assuming complete control over Uninor in abrogation of all the rights of Unitech under the articles of Uninor,” Unitech said.
The real estate group said it is equally sensitive to the interests of customers, employees, and other stakeholders of Uninor but will continue to resist any malafide and/or unilateral action by Telenor.
Both the firms have been on loggerheads since the Telenor’s proposal of going for a rights issue to raise the funds. Unitech, while opposing the proposal, had also gone to the court over this. Unitech is insisting on debt funding for raising funds. Unitech had also recently moved the Company Law Board, complaining against Telenor for mismanagement of operations. The companies are also facing arbitration in Singapore Court.
The relations between the two soured further after the SC in its order on February 2 had cancelled 122 licences issued after January 2008. The vacated spectrum will now be auctioned by the government within four months, as directed by the SC .
Last week, Telenor said it will set up a new company in India with a 74 per cent stake, which will participate in the upcoming 2G spectrum auction. It also plans to go to the FIPB for necessary permissions. Simultan-eously, it also issued a notice to the Unitech Group of voidance of the current shareholders’ agreement with Unitech on account of fraud and misrepresentation on their part as established by the Supreme Court judgment. Unitech had termed Telenor's move as "shocking" and has said Telenor cannot terminate the shareholder agreement unilaterally.