Info-tech

DoT raises objection to Unitech Wireless merger

Thomas K Thomas New Delhi | Updated on March 12, 2018 Published on September 13, 2011




Unitech Wireless is in further trouble as the Department of Telecom has raised concerns against the amalgamation of its eight subsidiaries into Unitech Wireless (Tamil Nadu).

Unitech had applied for 2G licences under eight companies and then merged the entities. The amalgamation was approved by the Delhi High Court but the DoT has taken a view that the company should have taken prior permission from the Government for the merger.

“The requirement of prior permission of DoT for transfer of licence is of utmost importance when licences of overlapping areas are to be transferred like in the present case and that too when some licences are not three years old. Unitech Wireless (Tamil Nadu) has not taken prior approval of the DoT before filing company petition in the Delhi High Court wherein the Court sanctioned the amalgamation of the companies,” stated an internal DoT note.

The DoT had earlier raised similar objections in the case of merger between Idea and Spice. The Department may consult the Ministry of Corporate Affairs and Ministry of Law and Justice before taking further action. This comes even as the company is facing allegations of irregularities in getting the 2G licences. The Comptroller & Auditor General has alleged that the company was not eligible for licences at the time of applying. Unitech has challenged these allegations in the Supreme Court.

Published on September 13, 2011
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