DoT concerned over BIPA threats

20 Jun 2012

Indian regulator the Department of Telecommunications (DoT) has reportedly sought advice from the attorney general regarding potential legal action from foreign investors in mobile operators whose licences were cancelled by the Supreme Court in February. According to the Economic Times, the DoT is looking for the attorney general’s office to give its stance on whether foreign investors would be able to invoke bilateral investment protection agreements (BIPAs) to sue the Indian government and claim damages for the revocation of concessions. Russia’s Sistema group and Telenor of Norway, both of which are partially state-owned, are amongst those that have lost out from the 2G licence debacle and have threatened to seek international arbitration to reclaim some of their losses. The DoT has so far maintained that the effected operators are not entitled to a refund of their licensing fee, nor compensation for their investments.