labels: telecom, vsnl, reliance communications
Reliance Comm''s FLAG slaps notice on VSNL for $406 million news
07 February 2007
Mumbai: FLAG Telecom, Reliance communications global undersea cable business division ha slapped Tata group company Videsh Sanchar Nigam with a notice of a $406-million claim.

The claim works out to over Rs1,800 crore. FLAG has approached the Arbitration Tribunal of the International Chamber of Commerce (ICC) seeking monetary relief in the FLAG-VSNL dispute with respect to the interpretation of the Construction and Maintenance Agreement governing the FLAG Europe-Asia cable system (FEA), said a statement from VSNL to the stock exchanges on Tuesday.

VSNL owns the Mumbai cable landing system of FEA.

The earlier award of the ICC tribunal in May last year had gone in favour of FLAG. The partial award, by 2:1 majority, ordered VSNL, to grant FLAG access to the Mumbai cable landing station of the FEA cable system for upgradation to any level. In September 2006 VSNL had appealed this in a writ filed at the District Court in the Netherlands.

VSNL''s shares slid by 3.4 per cent on the BSE, closing at Rs488.5 on Tuesday.

 


 search domain-b
  go
 
Reliance Comm''s FLAG slaps notice on VSNL for $406 million