Khaitan Holdings Mauritius Ltd (KHML), an investor in Loop Mobile, has invoked the India-Mauritius Bilateral Investment Promotion and Protection Agreements (BIPA), issuing a USD1.4 billion notice over the cancellation of Loop’s licences in February 2012, the Economic Times reports. KHML, which holds a 26.95% stake in the telco, has sought the return of the USD140 million it had invested in the operator since 2008, with 12% annual interest and compensation for the loss of use of the investment. It also claimed USD1 billion as its share of ‘lost shareholder revenue’, that Loop would have earned over the course of its licence period. KHML has instructed the government to appoint an arbitrator within two months.
The paper quoted the notice as saying: ‘The licences were cancelled solely due to the illegal acts and omissions of the Union of India and no criticism or blame was levelled at KHML or Loop by the court. [Consequently] KHML has suffered significant losses, with its investment wasted the absolute loss of the prospect of future returns on that investment.’