Unitech moves CLB against Telenor | business | Hindustan Times
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Unitech moves CLB against Telenor

business Updated: Oct 11, 2011 21:00 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Unitech Ltd, the Indian joint venture partner in Unitech Wireless (Tamil Nadu), on Tuesday filed a petition with the Company Law Board claiming mismanagement of Uninor business operations by Telenor Asia Pte Ltd and its key management executives.

In the petition, Unitech Ltd has stressed the "oppressive" and "malafide" actions of Telenor and its executives on the board of Unitech Wireless (Tamil Nadu).

The petition claimed that Telenor and its executives are not running the business in the interest of Uninor and its workforce.

"The present action is being instituted in order to protect and safeguard the interests of the company whose affairs are being conducted in a matter prejudicial to its interests. This petition is to safeguard the rights of Unitech Ltd and its subsidiaries which are being violated by Telenor."

"Uninor" is a brand name used for mobile services being provided by Unitech Wireless (Tamil Nadu) Pvt Ltd. While Telenor Asia Pte holds 67.25 % stake in the company, Unitech Ltd through its associate companies holds 32.8 % stake.

The petition claimed that Telenor and its key executives failed to obtain project finance for the company in accordance with the mandate of Articles of Association when it was available.

"During November 2010, Telenor had refused a long term debt of Rs 9,000 crore from SBI when it was available. Telenor being the majority shareholder of Uninor declined the sanctioned long-term loan of Rs 9,000 crore," the petition said.

Telenor Asia could not be reached immediately.