Almost three years after the department of telecommunications (DoT) withdrew its approval to grant telecom licences to ByCell Telecommunications India Pvt. Ltd, lawyers for the firm’s Switzerland-based majority partner have written to President Pratibha Patil and Prime Minister Manmohan Singh on 18 June on their intent to initiate international arbitration against the Indian government, using the India-Cyprus bilateral trade agreement.
“India has treated ByCell India in a grossly arbitrary and discriminatory manner, contrary to articles. The promoters and Tenoch (Holdings Ltd) intend to prosecute in international arbitration unless India agrees to promptly engage in a constructive dialogue aimed at reaching a mutually agreeable resolution of the investment dispute,” the lawyers said in the letter, reviewed by Mint.
The letter was sent by Gaëtan Verhoosel, partner, Covington and Burling LLP, lawyers representing Maxim Naumchenko and Andrey Polouektov, Russian nationals who jointly hold 100% in the Cyprus-based Tenoch.
Tenoch, in turn, owns a 97% stake in Switzerland-based ByCell Holding AG, which holds 73.79% in ByCell Telecommunications. The remaining stake is held by the Hyderabad-based Jayalakshmi Group.
In July 2009, DoT, in an unprecedented move, withdrew its approval to ByCell on grounds of security concerns.
Apart from Singh and Patil, the letter is addressed to then finance minister Pranab Mukherjee, foreign minister S.M. Krishna, home minister P. Chidambaram, communications minister Kapil Sibal and attorney general G.E. Vahanvati. Four other companies have served notices to the government regarding their investments in the telecom sector.
