Loop Telecom investor KHML has served final notice to the government stating that it would proceed before international arbitrator if the third round of talks scheduled for September 13 fails.
"Khaitan Holding Mauritius Ltd has made claim of about R 3,764 crore and third round of meeting is scheduled for September 13 to arrive at amicable solution.
"They have issued final notice while we are yet to meet," said an official source.
No immediate comments were received from the company. The Mauritius-based investor first served notice to the government in April 2012 for resolving disputes under Bilateral Investment Promotion and Protection Agreements following cancellation of all its 21 licences by the Supreme Court in the 2G case on February 2, 2012.
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 two round of discussion.
Now Kaif Investment and Capital Global are jointly being represented as KHML which has served final notice for international arbitration.
Though exact date of notice could not be ascertained, it is learnt to have been served after discussion held on April 4, 2013 was not found fruitful by the foreign investor.
India signed BIPA with Mauritius on September 4, 1998 and it took effect from June 20, 2000. As per the agreement, if disputes between investors of the two nations are not resolved amicably, the aggrieved party can go for arbitration or through international conciliation under the Conciliation Rules of the United Nations Commission on International Trade Law.
Indian team comprising officials from the department of telecom and the ministry of external affairs had two rounds of meetings with KHML representatives but could not arrive at any conclusion.
KHML has sought refund of $166.89 million which includes interest on direct investment in made in Loop Telecom and R2,457.53 crore, including interest, on licence fee that it paid in 2008.
The firm has also asked for release of bank guarantee of R404 crore at zero cash cost to the firm.
The Centre decided to adjust the money of telecom operators, affected by