It seems the India telecom industry is getting too messed up after the 122 2G license cancellation from Supreme court last week. As per Reuters reports Norway’s Telenor Group wants to drop its partnership with Unitech, the Indian construction group and the joint venture partner in Uninor and also sought compensation for cancellation of telecom licenses.

The Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of the licenses – seeking compensation for all investment, guarantees and damages caused by the Supreme Court Order. Telenor Group also makes an indemnity claim against Unitech for cancellation is a clear breach of Unitech’s warranties, Telenor Group will consider every option available to secure the continued successful development of its mobile services in the country. It is Telenor Group’s position that the strategic partnership with Unitech Limited does not have a future, and it therefore will start the process of looking for a new Indian partnerTelenor said in a statement.

Telenor to Drop Partnership With Unitech on Uninor

Unitech one of the top builder groups in India, denied any breach of warranties and accused Telenor of a violation of the confidentiality covenants of the shareholders’ agreement on a  response to the statement from Telenor .

 “At best, Telenor can claim damages from the government under the investment bilateral treaty. We reserve our right to take appropriate legal action against Telenor for damages caused to Unitech Group from breach of the confidentiality obligation by Telenor,” the Unitech statement said.

On Feb 2 only hon’ble Supreme Court of India cancelled 122 2G licenses given to telecom operators pan India, which was granted to 11 companies, after January 2008. By this judgement Uninor land over to major trouble losing 22 2G licenses of its telecom circles. Earlier Uninor said it has been “unfairly treated” and “was shocked” after the Supreme Court’s verdict.

It seems in coming days we can see more partnerships breaking and new one’s joining. There also some reports that STel will fully stop its telecom operation in India and as an indication it has asked its customers to port their numbers to other operators through MNP.

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