The Hindu Business Line : VSNL joins issue with Reliance Comm

Videsh Sanchar Nigam Ltd has objected to recent announcements by Reliance Communications Ltd (RCOM) with regard to the ICC Arbitration Award. RCOM's announcements contain "disparaging imputations against VSNL" and are not supported by fact, VSNL told the Bombay Stock Exchange on Wednesday.

"Repeated statements by FLAG through its holding company, RCOM, that VSNL was acting or engaging in alleged monopolistic and anti-competitive practices appear to have been made with sole intent to bring disrepute to VSNL.

The allegation that ultimate users of international capacity will be harmed due to exorbitant prices is patently false and only made to create the facade of public concern," VSNL said.

On the allegation that VSNL had violated its commitment, it said: "VSNL has been fully compliant with its obligation to perform the award. As a matter of New York law, which governs the terms of the Construction & Maintenance Agreement, Dutch law and international arbitration practice there is no restriction on a party's fundamental right to challenge an award when arbitrators (in this case by majority as it is not an unanimous award) have exceeded their mandate. The Netherlands Court has already admitted the writ filed by VSNL. However, the award until it is set aside, is binding on VSNL and VSNL is fully compliant with its obligations. Indeed, VSNL and FLAG are currently liaising for the upgrade of the Mumbai cable landing station by FLAG."