170 Investors following Essar Tele. Share this News with them.
0
Like this story, share it with millions of investors on M3
Hutch-Essar battle it out in court
The Bombay High Court reserved its order on Hutchison Essar's plea seeking an injunction against the sale of shares of BPL Mobile Communications, reports CNBC-TV18.
The Bombay High Court reserved its order on Hutchison Essar's plea seeking an injunction against the sale of shares of BPL Mobile Communications, reports CNBC-TV18.
According to the agreement, Essar was to return the payment made by Hutchison Essar for BPL Mumbai circle within five working days. The court decided that the five days would begin from the date of the court order.
Hutchison Essar says that Essar should sell 100% equity to them and treat it like any other acquisition. It further adds that the merger of telecom licences are subject to approvals, independent of acquisition.
Essar argues that the acquisition of BPL is not independent of merger of licences. Also, acquisition can happen only after approval from the Department of Telecommunications.
According to Hutchison Essar, it has paid Rs 1,617 crore for BPL's Mumbai circle. This should be treated as consideration and not as deposit.
However, Essar argues that Rs 1,617 crore received from Hutchison Essar is a deposit and that it is ready to refund the amount entirely.
Essar argues that the acquisition of BPL is not independent of merger of licences. Also, acquisition can happen only after approval from the Department of Telecommunications.
