DoT nod must for merger: HC

ESSAR-HUTCH ROW

Bombay High Court today clarified that approval under the Department of Telecommunications (DoT) guidelines is necessary for the completion of the Essar-BPL merger and going ahead with the acquisition without the department's permission would be "illegal and void".

The court also clarified that the findings of the court are prima facie and would not influence or be binding on the arbitration tribunal.

It also clarified that Hutchison Essar Ltd (HEL) had also asked the court for an order to prevent BPL Mobile Communications Ltd (BMCL) from acting on the termination for the limited purpose of keeping the DoT application valid.

These modifications to its order dated August 10 were based on the application made HEL and BMCL and its shareholders. The clarifications were agreed to by both parties, it said.

Despite getting DoT's approval, the Essar-BPL merger is still in a limbo as the regulatory clearance for the stake sale is yet to come through.

For the merger to go through, a DoT approval for is stake sale is necessary, even though the deadline had expired on July 31, 2006. DoT gave its approval on Friday for the merger of the two licenses.