Cancellation of Telecom Licenses in the 2G Case: Claim for Indirect Expropriation?
Volume 6 Issue 2 (2013)
This paper focuses on the repercussions of the controversial 2G judgment, which resulted in cancellation of licenses held by telecom companies. Aggressive action is being undertaken by irate foreign companies in joint ventures with Indian telecom license-holder companies. Caught in an imbroglio of legal actions, most of the foreign investors have decided to resort to every possible legal measure to protect their investment in the Indian telecom sector. The paper examines whether the Supreme Court verdict leads to an expropriatory act entailing compensation under a Bilateral Investment Treaty. The starting point of such an inquiry is based on the claim made by the Russian investor, Sistema under the BIT signed between Russia and India.