Telenor has asked its partner in India, Unitech, to compensate it for the Indian Supreme Court's cancellation of the licences of their joint venture Uninor. Mobile operator Uninor's 22 licences were part of the 122 licences cancelled by the court due to irregularities in the original award process in 2008. The court has ordered the licences to be redistributed in an auction. Telenor said it holds Unitech liable for the breach of warranties in their shareholders agreement, and the Norwegian operator is seeking compensation for all investment, guarantees and damages caused by the court ruling. Telenor also made an indemnity claim against Unitech for the failure to obtain spectrum in the strategically critical Delhi circle. Telenor said it remains committed to the Indian market and continuing Uninor's mobile services. As the partnership with Unitech has "no future", Telenor said it will start the process of looking for a new Indian partner. Telenor has invested INR 61 billion for 67.25 percent ownership in Uninor and also fully guaranteed INR 80 billion of short-term debt at the company. Telenor earlier tired to raise its stake in Uninor to the legal limit of 74 percent, but reportedly could not reach an agreement with Unitech on the price.
