Telenor has announced it will seek indemnity and compensation from its Indian partner Unitech following the Supreme Court of India’s decision to cancel 122 2G licenses.

In a statement, Telenor added that the strategic partnership, in which it invested €1.2 billion for a 67 percent stake of the Uninor brand, “does not have a future”.

The Supreme Court announced on 2 February that the licenses, of which Unitech holds 22, would be cancelled in June.

The Norway-based operator said it holds Unitech liable for the breach of warranties related to the cancellations.

"The legality and validity of the licenses was a fundamental term of the share subscription agreement between Telenor and Unitech,” said Pål Wien Espen, Telenor’s group general counsel.

“We believe that the Supreme Court's cancellation of the Unified Access Service Licenses (UASL) conclusively demonstrates a clear breach of Unitech's warranties."

Telenor said an indemnity claim is also being made over Unitech’s failure to obtain spectrum in the "strategically critical Delhi circle".

The statement went on to say that Telenor will “consider every option available” as it looks to keep a mobile presence in India.

“Telenor will start the process of looking for a new Indian partner,” the statement concluded.