DoT seeks clarification from BPL on mobile business

The government seems unsure of the actual ownership of BPL's mobile business, which was bought by Hutchison-Essar last year and has sought clarifications from it in this regard.

In June 2005, the Essar group had acquired both BPL Mobile Cellular and BPL Mobile Communications, but the legal mergers are yet to take place.

Following Hutch-Essar's application for the legal merger of BPL Mobile Cellular Ltd and BPL Mobile Communications with it, the department of telecommunications has asked the BPL group about who actually owned these companies.

This is because BPL Communications Ltd was the holding company for the group's mobile business. It held a 74 per cent stake in BPL Mobile Communications Ltd (which has operations in Mumbai) and 100 per cent in BPL Mobile Cellular (which offers services in Maharashtra, Goa, Tamil Nadu, Pondicherry and Kerala).

The department of telecommunications has now sent a series of letters to BPL about the actual owner of BPL Communications Ltd.

Communication between BPL and DoT started earlier this year when the former sought approval for transfer of its 100 per cent stake in BPL Mobile Cellular to Hutch-Essar.

The DoT wanted to know why BPL Communication's stake in the Mumbai operations was not part of a similar transfer. Additionally, it asked for information on the actual ownership of BPL Communications.

The DoT also said a company named Global Capital Ltd holds more than a 10 per cent stake in BPL's Mumbai operations and sought details of this ownership, including the promoters and shareholders of the company.

According to DoT sources, the department has given BPL 11 days to clarify all outstanding issues.

BPL's mobile business was first bought by the Essar Group and later sold to Hutch-Essar.