THE 2G DIVORCE STORY!

Will foreign telecom investors take legal action against their Indian partners and the government of India? We asked this question right after the supreme court delivered it's judgment in the 2G case and ordered the cancellation of 122 2G telecom licenses.

And so this week when Telenor announced that it was seeking indemnities from Unitech India, we were not in the least bit surprised. And though this maybe an extension of the already existing hostilities between the two partners, it's possible that other foreign telecom investors may follow suit. So this week, Payaswini Upadhyay examines the role of reps, warranties, indemnities and bi-lateral treaties in the coming apart of a corporate marriage. In January 2008, Unitech Wireless purchased 22 telecom licenses and 2G spectrum from the Indian government. That very year Norwegian telecom company Telenor invested in Unitech Wireless. By the end of 2011, Telenor owned 67.25% of Uninor and had invested over Rs 14,000 crores. But the same year, the partnership started souring over further fund raising.  The hardest blow came in February this year when a Supreme Court judgment ordered the cancellation of 122 telecom licenses including Uninor