Khaitan Holdings invokes int'l arbitration against India

Loop Telecom's investor Khaitan Holdings has filed international arbitration against Indian government seeking damages of over USD 1 billion for 2G licences in which it had invested and were cancelled by Supreme Court on February 2, 2012. CNBC-TV18's Malvika Jain reports.

Khaitan Holdings has invoked international arbitrations against India. Khaitan Holdings has invested approximately USD 140 million into Loop Telecom, one of the companies whose licenses were cancelled by the Supreme Court. It is saying that the Government of India has failed to protect its investment and has violated the India-Mauritius Treaty. Also Read: No intention to buy back Vodafone stake: Sunil Mittal
Khaitan Holdings goes onto say that by not giving them a refund of the license fee, which the company had made, and by actually selling the licenses at a much higher rate post cancellation of licenses the Government of India has not fulfilled its responsibilities. Khaitan Holdings has been seeking adjustment of the license fee and other charges, which it had paid to the government at the time of buying telecom license.
The Government of India has so far not been able to address Khaitan Holdings’s concerns. Khaitan Holdings wants the arbitration to take place either in London or Dubai. It remains to be seen what the Government of India will have to say in this regard.