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DoT & Unitech Ask FIPB To Look Into Uninor Rights Issue: Reports

The Department of Telecom (DoT) has asked the Foreign Investment Promotion Board (FIPB) to make a decision on Uninor's rights issue only after taking into consideration the pending issues related to the company, reports TheHinduBusinessline. The report sites an internal DoT note, which the publication claims to have access, to confirm the move. According to the report, the DoT has asked the FIPB to look into the legal notice issued by the Norwegian firm against the Indian Government under a bilateral investment treaty following cancellation of 2G licences by the Supreme court of India. Other pending issues include legal cases in the Supreme Court and issues such as Uninor's request for amalgamation of its seven companies, non-fulfilment of eligibility conditions of unified access licence, arbitration, and others, in addition to the condition that the company meets FDI and security norms. Telenor had informed that it’s Indian JV had initiated a rights issue of Rs 8200 crore ($1.65 billion) to get a long term funding. Telenor holds 67.25% stake in Uninor. To increase its stake, it needed to raise Rs 1200 crore through FDI, and had submitted a proposal to the FIPB. On 11 October 2011, Unitech had initiated a process before the special judicial body Company Law Board (CLB) by filing a petition against Uninor, the Telenor-appointed directors on the Uninor board, Telenor Asia Pte Ltd. and Telenor ASA, alleging that the respondents had oppressed the minority shareholders and mismanaged the business of Uninor. Unitech has since then told Telenor that…

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