Unitech moves company law board against Telenor
October 11th, 2011 - 8:41 pm ICT by IANS
New Delhi, Oct 11 (IANS) Unitech, the Indian partner of mobile services firm Telenor, Tuesday said it has filed a petition before the Company Law Board (CLB) to restrain the Norwegian firm from going ahead with a $1.7 billion rights issue, and accused it of mismanging the telcom entity’s funds.
Unitech said Telenor had refused to raise debt through other means even though the State Bank of India had agreed last November to give it long-term debt of about Rs.9,000 crore ($1.8 billion).
The Indian firm also added that the mobile firm did not require fresh funds at this moment for its operations.
Telenor, however, refuted these claims.
“There was an unsuccessful attempt earlier to block the rights issue through a legal process that went up to the Supreme Court of India. As we have done earlier, we will present the facts in this new legal initiative taken by Unitech Ltd.,” said a statement from Telenor.
“The simple case here is that the Uninor board, having followed prescribed processes, has asked its owners to invest more in the company in the absence of bank loans. We continue to urge Unitech to join us in meeting this shared responsibility towards the company,” the Norewegian company added.
Unitech’s managing director Sanjay Chandra is among the 14 people charged by the Central Bureau of Investigation (CBI) in the 2G spectrum and telecom licensing scandal.
“Uninor has already emerged as the most successful new operator in India by far and Telenor Group will not allow any of this to disrupt its continued progress,” said Telenor.
- Telenor confident of roping in new partner before auction - May 31, 2012
- Telenor-Unitech case referred to international arbitration - Apr 12, 2012
- Company Law Board suggests mediation to Telenor, Unitech - Mar 01, 2012
- Telenor, Unitech move Company Law Board to protect interests (Lead) - Feb 27, 2012
- Telenor to form new company for India operations - Feb 21, 2012
- Contest Telenor's demand for compensation: Unitech - Feb 16, 2012
- Income tax department attaches Unitech shares in Uninor - Mar 28, 2012
- Telenor in talks with domestic firms to continue India service - Apr 20, 2012
- Telenor to write down $724.5 mn investments in Uninor - Feb 04, 2012
- Telenor moves company law board to protect India investment - Feb 27, 2012
- Telenor won't quit India, Norway monitoring situation - Feb 03, 2012
- Foreign telecom firms want government to clarify stand (Lead) - Feb 02, 2012
- Telenor writes down remaining Indian assets worth $680 mn - Apr 30, 2012
- Telenor's India unit posts $806mn quarterly loss - May 08, 2012
- Uninor to file interim application in Supreme Court - May 01, 2012
Tags: bank loans, bank of india, cbi, central bureau of investigation, chandra, indian partner, last november, legal initiative, managing director, mobile services, norwegian firm, oct 11, sanjay, state bank, state bank of india, supreme court of india, telenor, term debt, unitech ltd, unsuccessful attempt