Sistema Files Formal Complaint Over Cancellation of Indian GSM Licenses

Published on: 28th Feb 2012

­Russia's Sistema says that it has filed a formal complaint over the cancellation of the GSM licenses held by its Indian subsidiary, MTS India.

Sistema says sent a formal notice notifying the Indian government of a dispute under the Bilateral Investment Treaty (BIT) between the Government of the Russian Federation and the Government of the Republic of India.

Earlier this month, India's Supreme Court cancelled 122 telecom licenses, including 21 licenses belonging to Sistema Shyam TeleServices (MTS India), in which Sistema owns a 56.68% share.

Sistema said that it believes that the cancellation of SSTL's licenses following Sistema's investment of billions of dollars into the Indian cellular sector is contrary to India's obligations under the BIT, including obligations to provide investments with full protection and security and obligations not to expropriate investments.

The formal notice requests The Republic of India to settle the dispute relating to the revocation of SSTL's 21 telecom licenses in an amicable way within six months. If the dispute is not amicably resolved by August 28, 2012, Sistema reserves the right to commence proceedings against The Republic of India as provided in the treaty.

 

Tags: [sistema]  [mts india]  [gsm license]  [India]