Corruption Scandal in India Hits Telenor

India's Telecommunications Minister A. Raja resigned this week after the scandal. According to the Indian National Audit Office, he has cause the country to lose more than 200 billion.

It was revelaed that Raja sold the mobile licenses to companies he chose – without a tender. Telenor's partner in India, Unitech was one of the companies that enjoyed by the telecommunications minister's favor. The licenses are awarded on the basis failing and must be canceled, the opposition requires.

According to NRK's report, Raja distributed licenses for a "first-come, first-serve" principle, without a tender. However, Telenor was not involved in this procedure directly, but last year bought owns 67.5 percent of the shares in the Uninor, which has been involved in the corruption.

Telenor CEO Jon Fredrik Baksaas was asked by Indian TV whether he regrets that Telenor bought Unitech shares, and he replied that Telenor had considered this in a larger context, where India has tremendous potential for growth and the corruption scandal that shook India is now happening at a time when Telenor was not present.

Baksaas avoided to answer the interviewer's questions about any concerns about investment and Telenor's future in India.

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