Giving a setback to foreign telecom investors, highest law official in the country Attorney General Goolam Essaji Vahanvati said that foreign investors in mobile phone companies whose licenses were cancelled by the Supreme Court in its Feb 22 orders can’t claim damages for cancellation of their 2G licenses.
The attorney general has further said that claim of damages of these companies was based on a complete misunderstanding of the constitutional position prevailing in the country. Reiterating his stance, Vahanvati said that countries entering into bilateral agreements 'ought to have been fully aware of the constitutional set up of the country, where the Parliament has the powers to make laws, and the government of India in its executive powers can enter into treaties'.
These global investors are Norway's Telenor, Russia's Sistema, Capital Global and Axiata Group had submitted notices to the Indian government for alleged breach of bilateral investment protection agreements after the apex court quashed their mobile permits.
However, the Ministry of External Affairs (MEA) and the Department of Commerce has not agreed to Vahanvati’s opinion and expressed views on this stance that foreign companies can take legal action against the government and claim damages under the bilateral investment protection pacts (BIPA). Further, they added that according to international law the Indian State is a single entity and the conduct of any authority is attributable to the State of India.
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