Chandra refuses to step down, asks for substitute
Unitech Wireless chairman Sanjay Chandra, arrested by the CBI in the wake of the 2G spectrum scam, has asked the telecom company's board to appoint an alternate director to deal with its day-to-day affairs as an interim arrangement, Unitech said today.delhi Updated: Apr 24, 2011 21:34 IST
Unitech Wireless chairman Sanjay Chandra, arrested by the CBI in the wake of the 2G spectrum scam, has asked the telecom company's board to appoint an alternate director to deal with its day-to-day affairs as an interim arrangement, Unitech said on Sunday.
Unitech Wireless is a joint venture between Unitech and Norway's Telenor. Telenor holds a majority stake in the telecom venture.
The company had acquired licences to offer mobile service in 2008, which have come under the scanner. Telenor had demanded that Chandra should resign from the chairmanship of Unitech Wireless till the investigations into 2G spectrum issue are over.
"We would like to clarify that Mr Sanjay Chandra has not resigned, however in light of the recent developments in the investigations, he had already requested the Uninor (Unitech Wireless) board to appoint an alternate director in his place for dealing with company affairs in the near term," Unitech said in response to a query by PTI.
"One of Unitech’s nominee directors will take over as the Chairman of the board. This request was sent a few days back, the company said. It (Unitech) will continue to monitor the situation closely and review the decision should the need arise, the company said, adding that the request (to nominate an alternate director in place of Chandra) was sent a few days back.
Chandra and Unitech Wireless have been named in the chargesheet filed by the CBI as accused in 2G spectrum scam. Chandra was arrested last week after the Special Court denied bail to him along with other accused. "We have responded to our partner through appropriate means, because in the past, the responses of Uninor ( Unitech Wireless ) and of its Chairman related to the investigations have been jointly and mutually decided with Telenor," Unitech said.
Earlier during the day, Telenor had said that "Sanjay Chandra is facing serious accusations, and Telenor expects him to focus on defending his case in court while Unitech Wireless focuses on running its business."
Glenn Mandelid, Director of Communications, Telenor Group, Asia, said in a statement "We therefore still believe that a temporary resignation for as long as the 2G court case is ongoing is the appropriate action, and we will continue to persuade Unitech Ltd that Sanjay Chandra steps down, and that they appoint a replacement, as this would be in Unitech Wireless' best interest."