Vodafone-Idea on Thursday received the NCLT approval for winding up two of the erstwhile companies of Vodafone, marking the full and final merger approval from the tribunal.
The National Company Law Tribunal had earlier approved the merger proposal of Vodafone India and Idea Cellular. Thursday’s approval is for winding up Vodafone Mobile Services and Vodafone India.
The merger of the two operators was subject to NCLT Mumbai bench passing the dissolution order of VMSL and VIL.
Idea, part of the Aditya Birla conglomerate, and London-based Vodafone signed a merger agreement last year to create the country’s biggest telecom operator.
The department of telecommunications (DoT) had also given its nod to the proposed Vodafone-Idea merger.
The merger followed a consolidation the telecom sector amid a year-long price war sparked by the entry of Reliance Jio which followed a low tariff model to grab new and existing customers from rivals. In July, Vodafone and Idea got their final government approval for merger after payment of all dues to DoT under protest.
The department had on 9 July raised a demand for Rs 3,900 crore in cash and Rs 3,300 crore in bank guarantees towards one-time spectrum charges to be paid as part of the merger and acquisition guidelines.
Vodafone India and Aditya Birla Group-promoted Idea Cellular on March 20, 2017 announced their much-awaited amalgamation.
Aditya Birla Group chairman Kumar Mangalam Birla will be the non-executive chairman of the merged company while the current chief operating officer of Vodafone India, Balesh Sharma, will become the chief executive.