Solicitor Gen declines allusion to Etisalat-Allianz merger

After positive indications came from the Department of Telecommunications that it would allow the merger between Etisalat DB Telecom and Allianz Infratech late last year, in what could be termed as a blow to the combine, Solicitor General Gopal Subramaniam has now declined referring to the merger between Etisalat-Allianz. When asked whether the merger between Etisalat and Allianz Infra was valid, the solicitor general stated that the matter is pending before the Supreme Court, before adding that references to the merger were not entertained on several counts. Subramaniam said that firms allotted 2G licences face the risk of invalidation and that the matter is also subject to criminal investigation.

In October last year, sources in the DoT had indicated that it would approve the merger as Etisalat, which is the transferee company, had fulfilled all requirements of transfer. Sources had also indicated that no legal objections were raised by the DoT in the transfer.

In 2009, the government had blocked the merger between the two companies citing the three-year lock-in period after some telecom companies had sold their stake to foreign firms soon after spectrum was allotted in 2008.