Unitech on Thursday said that it would contest the compensation demanded by its Norwegian partner for cancellation of telecom licence saying that Supreme Court has raised multiple questions on the government policy which in no manner can be considered as breach of warranties on its part.

"The Supreme Court has cancelled all the UAS licences and spectrum granted on and after January 10, 2008, and has raised multiple questions on the government policy which in no manner can be considered as breach of warranties on the part of Unitech limited," Unitech statement said.

Telenor on Wednesday said that Unitech is responsible for the cancellation for Uninor licences seeking "indemnity and compensation" from the latter hinting that is looking for new Indian partner to continue its business in India.

"Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of licences – seeking compensation for all investment, guarantees and damages caused by the Supreme Court order," Telenor said in a statement.

Telenor Group has invested over Rs 6,100 crore in equity and over Rs 8,000 crore in corporate guarantees as a foreign investor and the company holds 67.25 stake in Unitech Wireless, which own brand Uninor.

"The Supreme Court has cancelled all the UAS licences and spectrum granted on and after January 10, 2008, and has raised multiple questions on the government policy which in no manner can be considered as breach of warranties on the part of Unitech limited," Unitech statement said.

Unitech said Telenor group can invoke the provisions between the governments for protection of their investment in India, but they shall have no valid claim on Unitech and any demand from Unitech shall be contested.

"Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of licences – seeking compensation for all investment, guarantees and damages caused by the Supreme Court order," Telenor said in a statement.