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NCLT approves withdrawal of RCom-Aircel merger

NCLT also approved the withdrawal of demerger of tower business of Reliance Infratel to Towercom Infrastructure

Press Trust of India  |  New Delhi 

Anil Ambani, Reliance Communications, RComm
Anil Ambani, chairman of Reliance Communications.

The has approved the withdrawal of merger deal between and Aircel, as per a regulatory filing.

"The National Company Law Tribunal, Mumbai Bench (NCLT) has passed orders dated October 13, 2017 approving withdrawal of ... the Scheme of Arrangement between the Company, Reliance Telecom Limited (RTL), Limited, Dishnet Wireless Limited, Deccan Digital Networks Private Limited, South Asia Communications Private Limited and their respective shareholders and creditors for demerger of wireless business of the Company and RTL to ..," said in a filing today.

The order also approved the withdrawal of demerger of tower business of to Towercom Infrastructure, the filing said.

RCom, which is reeling under a debt of about Rs 46,000 crore, had called off merger talks with Aircel, citing "legal and regulatory" delays and "various interventions by vested interests".

also blamed high level of competition as one of the reasons for termination of the merger talks.

The company said that unlimited free voice offers and "irrational pricing" by all industry participants have destroyed profitability of traditional 2G and 3G mobile business.

It was claimed that with the deal the debt of will come down to around Rs 20,000 crore, while that of to around Rs 4,000 crore.

First Published: Sat, October 14 2017. 23:17 IST