The spat between Essar and Hutchison for the acquisition of BPL (Mumbai) circle is far from over with the Indian corporate maintaining that the Department of Telecommunication's approval for acquisition of BPL shares is yet to come.
What has been received from DoT is an approval for the merger of two companies (BPL with Hutchison-Essar) and not for acquisition of shares and that too had been issued on August 11, which was after the termination of agreement of BPL Mobile Communications Limited, sources said.
"Under the agreement between BPL Mobile Communications Limited and Hutchison-Essar Limited, what should have been received was an approval of DoT for acquisition of shares and it should have been received by July 31, 2006," sources in the know of the deal said.
Last week, the Mumbai high court had directed both the parties, Essar and Hutchison-Essar, to resolve the dispute through an arbitration while restraining Ruias from selling the BPL (Mumbai) circle to any third party.
The court had not stayed Essar's termination of agreement and for this Hutchison-Essar is understood to have approached the court seeking a clarification in this regard.
The company officials declined to comment on the issue.
On August 1, Essar had called off the deal to sell BPL Mumbai Circle to its telecom joint venture Hutchison-Essar citing absence of necessary government approvals.
Although, Essar had offered to return the Rs 1,617 crore (Rs 16.17 billion) taken as deposit in lieu of selling 97.5 per cent stake in BPL's Mumbai circle to Hutchison-Essar, the Bombay high court had said in its August 10 order that the five-day period would start only after Arbitration Tribunal's verdict.
The Bombay high court said during the period of four weeks for the setting up of Arbitration Tribunal, both the parties -- Essar and Hutchison-Essar -- if they want, can talk outside the court to settle the case.
On this, both parties are maintaining silence.
Last year, Essar Teleholdings had acquired BPL Mobile, Mumbai, and three other circles for $1.15 billion and in turn sold three circles to Hutchison Essar, while striking a deal with the JV for sale of Mumbai circle subject to necessary approvals.
The deadline for the merger was June 30, which was later extended by one month.
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