DoT approves Bharti Airtel and Telenor India merger

Merger of Indian arm-Telenor India of Norwegian telecom with India's Bharti Airtel NSE -0.93%, was approved by the telecom department. The telecom department transferred all licenses belonging to Telenor India, and its liabilities to Bharti Airtel as notified by it on May'14. 

In the notification by department it was stated that the present merger is taken on record without prejudice to the rights, contentions, remedies and steps which may be taken by the department, in pursuance of any subsequent orders of any orders, judgements and decisions of Hon’ble courts and tribunals in related pending matters." 

The Supreme Court had quashed the telecom department’s bid to make Bharti Airtel furnish a bank guarantee of Rs 1,499 crore as a pre-condition to approve the mobile phone operator’s buyout of Telenor India, but this made to make the deal. 

Department of Telecommunications (DoT) plea against Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) April 12 interim order that directed DoT to clear Airtel’s buy out of the India arm of Norway’s Telenor, without requiring the Indian telco to furnish the bank guarantee, was dismissed by Supreme Court. 

Bank guarantee from Airtel for Rs 1,499 crore as one-time charges for spectrum (OTSC) allocated to the carrier without auctions, and over Rs 200 crore for deferred payment for airwaves owed by Telenor, before approving the deal, was sought by department of telecom. Airtel had moved TDSAT against the DoT’s demand of OTSC – having paid up the Rs. 200 crore due on Telenor India’s airwaves, stating that case of one time spectrum charges was yet in court.  

Ref. : https://economictimes.indiatimes.com/news/company/corporate-trends/dot-approves-merger-of-bharti-airtel-and-telenor-india/articleshow/64157286.cms --- Dated: May'14,2018