Realty firm Unitech has said that it never agreed to Uninor's proposal to raise Rs 1,200 crore through a rights issue. In a letter to FIPB the company said there was only some discussion on the rights issue but no decision was or could have been made especially since the proposed rights issue is a matter of arbitration between the shareholders.

Unitech Wireless, the joint venture of Unitech and Norway's Telenor which operate under Uninor brand, had applied to Foreign Investment Promotion Board (FIPB) for permission to raise funds to meet operational and capital expenditure. Unitech, holds 32.75% stake in Uninor.

Referring to the May 23 Board meeting Unitech said issue of rights offer was not even an agenda item in the meeting and its directors on Uninor have already written to the company in this regard.

"We note that the letter (from Uninor seeking FIPB nod) stated that the nominee directors appointed by Unitech Ltd and its associates on the board of Uninor have also consented to the rights offer in the Board meeting of May 23, 2012," it said. "This is wrong and a misrepresentation of facts."
     
The realty firm said that matter of rights issue is pending before arbitration tribunal and next date for hearing in the matter is on September 24 in Singapore. Unitech alleged that the proposal of rights issue is probably an attempt by its Norwegian partner Telenor in the JV to introduce a new partner in an indirect manner.

"Telenor has made its intent to continue the telecom business in India with a new partner of its choice clear. Telenor's FIPB proposal should be taken up only after the credentials of this new partner," Unitech alleged.

It also accused Telenor of accusing breaching the hierarchy by not fully exploring the possibility of obtaining long term project finance and indeed, when at one point of time when project finance was available through State Bank of India, it was deliberately not taken," Unitech letter said.