Loop Telecom investors serve notice to government

Loop Telecom investors serve notice to government New Delhi: Mauritius-based investors in Loop Telecom, besides Sistema and Telenor, have slapped government notices under bilateral investment protection treaties, after Supreme Court cancelled their telecom licences.

While these investors in Indian telecom companies were aggrieved about cancellation of their licences by the Supreme Court, Vodafone sent a separate notice on the issue of likely tax on its 2007 acquisition of Hutchison after the proposed amendment in Income-tax laws.

In a written reply to a question in the Lok Sabha, Minister of State for Finance Namo Narain Meena said the government has received the notices under the provisions of the applicable Bilateral Investment Promotion and Protection Agreements (BIPAs) and Comprehensive Economic Cooperation Agreement "to resolve alleged investor disputes".

"The said notices are being handled in terms of the provisions of the applicable agreements, keeping i view the details of the case," he added.

The House was informed that notices have been served by Sistema Joint Stock Financial Corporation, Russia; Telenor Asia Pte, Singapore; Capital Global Ltd and Kaif Investment, both Mauritius based investors in Loop Telecom; and Vodafone International Holdings BV, the Netherlands.

PTI