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”
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