Bharti Airtel has withdrawn its proposal to acquire the business and assets of Mumbai-based telecom operator Loop Mobile as the Department of Telecommunications (DoT) has still not approved the Rs 7 billion deal. As per the agreement, Loop Mobile's then 3 million subscribers in the Mumbai circle were to be acquired by Airtel. With the deal called off, Loop Mobile will not be able to transfer its subscribers to Airtel.

Loop Mobile and Bharti Airtel had sought DoT’s approval of the business transfer in March 2014. DoT has still not given go-ahead to the deal as it is of the view that Loop Mobile and its sister concern Loop Telecom owe about Rs 8.08 billion in spectrum dues and other charges to the government.

Airtel’s decision regarding the deal also impacts Axis Bank’s Rs 2.15 billion worth of outstanding loan provided to Loop Mobile. A consortium led by Axis Bank had given advanced loans of Rs 3.50 billion to Loop Mobile.

Loop Mobile had earlier applied to the Telecom Regulatory Authority of India for release of additional porting codes for facilitating transfer of its subscribers. 

Loop Mobile will be closing its operations by end November 2014 after its licence expires on November 30, 2014. The telecom service provider has closed down retail stores in Churchgate, Andheri and Vashi in Navi Mumbai among other places.