Sistema, Russian billionaire Vladimir Evtushenkov's holding firm, sought resolution of Sistema Shyam TeleServices (SSTL) losing licenses, under the Bilateral Investment Treaty.
It added that the company reserves the right to begin proceedings against India in an international tribunal if the dispute is not settled "in an amicable way" by August 28.
SSTL President and CEO Vsevolod Rozanov said Sistema JSFC, which is the majority shareholder in SSTL, "has invoked its right under Article 9.1 of the BIT signed between the Government of the Russian Federation and the Government of India for the promotion of mutual protection of investment... which came into force on August 5, 1996."
Seeking protection of its $ 3.1 billion investment in India, the company said it also plans to file a petition this week for review of the Supreme Court order cancelling 21 of SSTL licences in the country.
Sistema has a joint venture with India's Shyam Group - Sistema Shyam Teleservices (SSTL) - in which the Russian government also has a stake of 17.14 per cent.
"...cancellation of SSTL's licenses following Sistema's investment of billions of dollars into the Indian cellular sector is contrary to India's obligation under the Bilateral Investment Treaty (BIT) including obligations to provide investments with full protection and security and obligations not to expropriate investments," Sistema said in a statement.
Sistema said it has sent a formal letter through its legal counsel "to the Republic of India of the existence of the dispute and proposing to settle it in an amicable way within six months."
Etisalat of UAE and Bahrain Telecom have already announced their exit plans following SC cancelling 122 licenses granted in 2008 under then Telecom Minister A Raja. SSTL operates in India under the MTS brand name.
Stating that letters have been sent to ministeries of external affairs, finance and communication and IT, Sistema said it reserves the right to commence proceedings against India before an international arbitration tribunal in case the dispute is not settled amicably within six months (August 28).
"We have always maintained that all our investors including Sistema JSFC and Rosimushestvo, the Russian Federal Agency for State Property Management, are being penalised for acting in good faith and in reliance on the appropriateness of the procedures established by India's telecommunications authorities," Rozanov said.
The SC order has had a major impact on foreign companies which are operating in India in partnership with various Indian entities.
Etisalat had parterned DB Group for launching its telephony services under Cheers brand, while Bahrain Telecom was working with Siva Group. Both Etisalat and Bahrain Telecom have announced their exits from India.
On the other hand, Norweigan firm Telenor, which partnered Unitech Wireless for operating Uninor has said it will start a new venture with another Indian partner.
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