Chinese smartphone manufacturer OnePlus has been banned from mobile sales in India after launching the OnePlus One running CyanogenMod custom OS.

Indian mobile company Micromax currently has an exclusive license to distribute CyanogenMod phones in India, a move announced two weeks before OnePlus' planned launch in the country.

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Micromax cites millions in spending to interest the Indian consumers in CyanogenMod, and the "illegal actions" by OnePlus would create "irreparable harm and loss" to the company. The YU CyanogenMod smartphone is currently the only CyanogenMod phone in India.

OnePlus argues that CyanogenMod only notified the company two weeks before launch, not leaving enough time for the Chinese phone maker to create a custom OS. However, Micromax claims OnePlus had the license much earlier than two weeks ago.

OnePlus has removed all of the CyanogenMod phone stock and will bring new models into the Indian market soon. In the West, the OnePlus One is still lacking in stock, but it looks like OnePlus is pushing hard in India.

It is not the first time a Chinese company has had trouble in the Indian market, Xiaomi has been banned from the Indian market following a run in with Ericsson India. Xiaomi's Redmi Note and other phones infringe on several EDGE and 3G patents.

TagsOnePlus, Micromax, CyanogenMod, YU CyanogenMod