Unitech seeks to restrain Telenor from any new India telco JV

Unitech Ltd said it has applied to a local court seeking to restrain Norway's Telenor from investing in any new telecom venture in India that would compete with companies' existing joint venture.

Unitech, a property company, is also seeking an injunction against Telenor's plans to transfer the joint venture's business to a new company, it said in a statement on Friday, adding the move was aimed at protecting its investments in the telecom business.

[caption id="attachment_261851" align="alignleft" width="380" caption="Telenor owns 67.25 percent stake in the Indian telecom joint venture, which operates under the Uninor brand, with the remainder held by Unitech. Reuters"][/caption]

Telenor owns 67.25 percent stake in the Indian telecom joint venture, which operates under the Uninor brand, with the remainder held by Unitech.

The companies have been embroiled in a dispute after the JV's telecoms permits were ordered to be revoked by the Supreme Court, which ruled last month all permits awarded in a scandal-tainted 2008 sale be quashed in early June.

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Telenor, which had bought into the venture after the permits had been granted, has accused Unitech of "fraud and misrepresentation" and is seeking to migrate the joint venture business to a new company to seek licences in an auction.

Unitech is opposing Telenor's move. Both sides have appealed to the Company Law Board, a quasi-judiciary body, which resumed hearing the case this week.

With 41 million subscribers as of February, Uninor ranks eighth in the Indian market which has 15 mobile operators.

Reuters