Telenor, Vodafone among six cos that sent notices to India
The government today said six firms have sent notices against India for breach of bilateral investment protection treaty and comprehensive economic cooperation agreement.india Updated: May 14, 2012 20:33 IST
The government today said six firms including Devas Employees, Telenor, Vodafone and Sistema have sent notices against India for breach of bilateral investment protection treaty and comprehensive economic cooperation agreement.
"The government has received notices under the provisions of the applicable Bilateral Investment Promotion and Protection Agreements (BIPA/Comprehensive Economic Cooperation Agreement (CECA) to resolve alleged investor disputes," minister of state for commerce and industry Jyotiraditya Scindia said in a written reply in the Lok Sabha.
While Sistema Joint Stock Financial Corporation has served the notice under BIPA with Russia, Telenor Asia Pte has served the notice under CECA with Singapore.
Notices have been served by The Children's Investment Fund Management, United Kingdom (BIPA with UK and Cyprus), Capital Global and Kaif Investment -- both investors in Loop Telecom (BIPA with Mauritius), Vodafone International Holdings (BIPA with Netherlands) and Devas Employees (BIPA with Mauritius).
"The said notices are being handled in terms of the provisions of the applicable agreements, keeping in view the details of the case," he said.
The objective of BIPAs is to provide fair and equitable treatment to the investors of either country in the territory of other nation.
Such agreements increase the comfort level of the investors by assuring a minimum standard of treatment in all matters and provides for justifiability of disputes with the host country.
India has so far signed BIPAs with 82 countries out of which 72 including that of with Russia, Germany, UK and Netherlands have already come into force and the remaining agreements are in the process of being enforced, Scindia said.
According to officials, the industry ministry has made a case for re-negotiation of such bilateral investment protection agreements with foreign countries.
On treaties signed between India and its neighbours in last three years to improve trade relations, he said: "India has signed one trade agreement viz India-Asean trade in Goods Agreement on August 13, 2009."
First Published: May 14, 2012 20:30 IST