BPL Communications is likely to send a letter today to Hutchison Essar terminating the sale of BPL Mobile that operates the Mumbai circle of GSM service.BPL Communications had agreed, in September 2005, to sell BPL Mobile to Hutchison Essar. The agreement was conditional on receiving approval from the Centre by June 30, 2006. Unable to receive the go-ahead from the government, both parties extended the deadline to July 31 which also passed without the required approval.The existing rules demand government approval for any entity to control more than 10% stake in two mobile service provider in the same circle. Both Hutchison Essar and BPL Mobile have operations in Mumbai.Ruia family-controlled Essar owns BPL Communications. Hutchison Essar is a joint venture between the Essar group and Hutchison Whampoa.
