Norwegian telecom operator Telenor, which holds a 67.25% stake in Uninor whose 22 licences were cancelled by the Supreme Court in February, has sought a refund of the R1,651-crore entry licence fee from the government, citing a funds crisis. The company has said that the cancellation has created uncertainty wherein the company?s shareholders and lenders are not willing to fund it to sustain operations.
The company?s MD, Sigve Brekke, wrote to the department of telecommunications secretary on March 20, urging the amount be refunded since ?Uninor believes that both under law, Article 14 of the Constitution and principles of equity, it will be entitled to an immediate relief of the entire entry fee paid to the DoT once the licences cease to be valid. This is because there is a complete failure of the considerations contemplated under the licence agreement for the payment of entry fee by Uninor and its retention in the hands of DoT.?
The development is the latest among a series of steps the company has taken since the February 2 judgment cancelling the licences within four months. The company?s review petition was dismissed by the SC on Wednesday. It has decided to send notices to the government under the bilateral treaty between India and Singapore since its investment is out of its Singapore unit. Telenor has also sought damages from its minority Indian partner Unitech for keeping it in the dark about the fraudulent methods through which the licences were obtained, leading to the cancellation.
The company has also decided to float a new company to bid for the licences when auctions are held afresh.
It remains to be seen how the government responds to the letter as its stand has been against any such refunds so far.
Uninor has sought the refund of the amount once the quashing of the licences comes into effect on June 2 and written confirmation from DoT to that effect beforehand. ?In case it is unlikely to be an immediate refund, please specify the likely date of the refund of the entry fee,? the company has written.
The company has said that with the SC cancelling the licences, it was facing uncertain times and a funding crisis. ?At present there is uncertainty with regard to timing of such refund. Such uncertainty is against the interests of the affected telecom companies, particularly Uninor, which is currently facing a funding crisis. Uninor’s shareholders are not in a position to commit support to funding Uninor considering that come June 2, Uninor would cease to have licences for continuing its business of providing mobile telephony services. Lenders are also not willing to commit any funds to Uninor for sustaining its operations until June 2, 2012,? Brekke has written.