Tuesday, October 1, 2013

India in Investment Arbitration LOOP.

A news report in the Indian Express here reports that Khaitan Holdings (Mauritius) Limited (KHML), a Mauritius based investor in Loop Telecom has initiated investment arbitration under the India-Mauritius BIT seeking damages over USD 1 billion for cancellation of its investment in 2G licenses which were cancelled by the Supreme Court of India.  To quote from the report: 

“KHML in the notice said that Supreme Court judgement has held Indian government process to issue licence "seriously flawed and legally untenable, as well as its policy being inherently arbitrary," and neither KHML nor Loop were blamed for this. ‘Despite this, neither adequate or any compensation has been paid to KHML and the spectrum has been subsequently re-bid,’ the notice said.”   

India now features as one of the top nations against which investment treaties claims lie. It all began with the success of White industries’ investment claim against India. Readers who wish to have a detailed analysis of the White Industries’ case may read my article in Kluwer’s Journal of International Arbitration. The abstract along with the citation is: 

“The Indian arbitration landscape is set for a completely new twist in the wake of the first investment arbitration award rendered against India. The decision was rendered in the matter between White Industries Australia Ltd. and the Republic of India in an United Nations Commission on International Trade Law (UNCITRAL) arbitration. This article examines the case, observes the questions which were considered by the tribunal, and discusses the rationale of the tribunal in arriving at its decision. Apart from an analysis of the case, the article also discusses its ripple effect which has already set in.
Ashutosh Ray, 'White Industries Australia Ltd. v. Republic of India: A New Lesson for India' (2012) 29 Journal of International Arbitration, Issue 5, pp. 623–635”

No comments:

Post a Comment

counter on blogger