Bilateral Investment Promotion and Protection Agreements following cancellation of all of Loop Telecom licences by the apex court.
Mauritius-based Kaif Investments and Capital Global, majority investor in Loop Telecom had served notice under BIPA in April 2012, following which government representatives have held three rounds of discussion.
India signed BIPA with Mauritius on September 4, 1998 and it took effect from June 20, 2000.
Now Kaif Investment and Capital Global are jointly being represented as Khaitan Holdings (Mauritius) Limited which has served final notice for international arbitration.
Indian team comprising officials from the Department of Telecom and the Ministry of External Affairs had three rounds of meetings with Khaitan Holdings (Mauritius) Limited representatives but could not arrive at any conclusion.
Government had decided to adjust the money of telecom operators affected by the apex court order, if they participate in spectrum auctions. This was to address concerns raised by foreign investors impacted by the apex court judgement.
Loop Telecom, however, opted out of both auctions that were held in November 2012 and March 2013 respectively and hence could not benefit from the government's decision.