Telenor has served a notice to the Indian government, threatening international arbitration and claiming damages of nearly USD 14 billion for cancelling its 22 mobile licences in India, reports Times News Network. Telenor invoked the provisions of India's Comprehensive Economic Cooperation Agreement (CECA) with Singapore to send the notice, demanding a reply from the government within six months or it will pursue international arbitration for failure to protect its investment. Telenor's notice, which was sent to the Prime Minister's Office, the Department of Telecommunications and the corporate affairs ministry, said that the cancellation of licences and the resultant loss of investments made by Telenor constitute a breach of India's obligation under the CCEA. It is also possible that there could be a further breach of the CCEA from the manner in which these licences are now redistributed through auctions. A Telenor Group spokesperson said that the company remains hopeful that the government will protect and encourage bona fide foreign investment in the country. Telenor is convinced that it can resolve this matter through continuing dialogue with the government such that it remains a long term participant in the Indian market. Citing clauses of the CCEA, the notice said that the compensation has to be equivalent to the market value of the expropriated investment at the time of the decision, which in case of Unitech Wireless is 2 February, the day when the Supreme Court cancelled 122 licences issued during ex-telecommunications minister A Raja's term. Up til then Telenor claims to have invested close to USD 14 billion in its Indian operations.
