MOSCOW, February 29 - RAPSI. AFK Sistema submitted to Indian authorities the official proposal to settle the dispute connected with the revocation of 21 licenses from Sistema's subsidiary Sistema Shyam TeleServices Ltd (SSTL), comapny's press-release reads.

Sistema warned to initiate proceedings against India if the authorities reject the settlement.

The proposal is connected with the Indian Supreme Court's decision as of February 2, 2012, to revoke 122 telecommunication licenses including 21 licenses from the SSTL company.

Sistema believes that the decision to revoke licenses contradicts the agreement between Russia and India to stimulate and protect investments.

Sistema owns 56.68 percent of the SSTL shares and invested millions of U.S. dollars in the Indian mobile communication sector. Thus the company believes that revocation of the SSTL license contradicts the agreement in which India committed to protect investments rather them seizing them, the message reads.

The Foreign Ministry earlier reported that Sistema and SSTL are expected to challenge the Indian court's decision.

According to the Indian Supreme Court the SSTL licenses were granted in the wrong order violating the Indian Telecommunications Ministry's procedures and requirements.