Facing charges of selling equity to make windfall gains, realty major Unitech on Friday said it had not sold shares in its telecom venture and asserted that it had obtained the license after complying with the necessary formalities as per guidelines.
Unitech, in a joint venture with Norweigan firm Telenor, had received telecom licenses in 2008. It was alleged that Unitech had sold stake in the venture to Telenor to make windfall gains.
"Unitech Ltd has not sold any shares held by it in Uninor to the Telenor Group. It is highly incorrect to allege that any favour was shown to Unitech during the license process," company spokesperson said in a statement.
Telenor has increased its shareholding in the JV to 67.25% stake through four rounds of funding. Telenor has invested Rs 6,135.63 crore till now.
To the allegation that some operators, including Unitech, were shown preference while granting license, the company said, "Unitech obtained the telecom licenses (through its 8 wholly-owned subsidiaries) along with eight other players, after complying with the necessary formalities prescribed in the applicable DoT guidelines at a cost determined by the Government."
It was alleged that these companies, who received license and spectrum, later sold stake to make huge windfall gains, selling at a premium.
"While the licenses were issued in February 2008, the first round of investment from Telenor in Uninor was received after 13 months in March 2009 and the fourth round in February 2010 after receiving all requisite clearance," the spokesperson said.
"The Telenor Group has invested Rs 6,135 crore in fresh shares over four rounds of investments, linked to milestones. This additional capital, from Telenor, has come into Uninor and remains within Uninor and this has not gone to any promoter to result in any profits," the spokesperson added.
In October 2008, Telenor entered into an agreement to pick up 60% stake in Unitech Wireless. In the first phase, Telenor invested Rs 1,250 crore in Unitech Wireless for a 33.5% stake, followed by Rs 1,130 crore for a 15.5% and another Rs 1,493 crore for a further 11.1%.
Unitech Wireless, which operates under the 'Uninor' brand name, has over 20 million subscribers. It holds pan-India license to offer mobile telephony services across 22 telecom circles.