Essar to ask for $700 million more for Vodafone JV stake

India's Essar group is seeking $600 million-$700 million more from Vodafone to sell its 33% holding in their Indian mobile joint venture to the British company, the Economic Times reported on Friday.

Last month, Vodafone said it would buy out Essar in a $5 billion deal in the joint venture, Vodafone Essar, giving it direct ownership of 75% of India's third-biggest operator.

Citing people familiar with the development, the Economic Times said Essar was demanding the additional amount based on a resolution by the Indian central bank that stipulates a minimum value for Indian shares in privately held companies.

Separately, the Business Standard newspaper said Essar was planning legal action against Vodafone for alleged violation of the shareholder agreement that governed the joint venture.

"We are bound by the confidentiality obligations under our agreement with Vodafone and, therefore, we would not like to comment," an Essar group spokesperson said.

A Vodafone spokesperson in London said the agreement announced last month between the two sides was legally binding, declining to comment further.