The Hindu Business Line : DoT moves tribunal to recover Rs 2,015 cr from Tata Tele

New Delhi, May 16 The Department of Telecom has filed an appeal with the telecom tribunal seeking to impose a penalty of Rs 2,015 crore on Tata Teleservices Maharashtra Ltd (TTML) for defaulting on payment of licence fee for fixed line telephone services in Karnataka.

The issue dates back to 1995 when Hughes Tele.com acquired licences for Karnataka and Maharashtra but never roll out services in the southern State.

Hughes Tele was later acquired by the Tatas but even they did not start services in Karnataka. DoT has alleged that the Tata company kept on saying for two years that they would launch the services but did not honour its commitments.

The penalty sought by DoT is for non-payment of licence fees during these years and the interest accrued.

DoT also told the Telecom Dispute Settlement Appellate Tribunal (TDSAT) that had Tata Teleservices surrendered the Karnataka licence, then the Government would have been able to get revenues by giving the licence to another operator.

“The petitioner (TTML) did not sign the licence for Karnataka. It, however, requested many times for grant of extension for signing of the licence agreement and paying first year’s licence fee, TTML was clearly informed that it has become liable to pay licence fee from September 30, 1997, which was the effective date for the licence agreement for Karnataka as well,” DoT said.

This is the second time DoT is taking its petition to TDSAT.

The first time the tribunal ruled in favour of Tata Teleservices after which DoT took the matter to the Supreme Court.

The apex court, however, directed DoT to take the case back to the telecom tribunal.

Licence fee plus interest

DoT contended in the latest petition that as per its calculation, TTML had to pay Rs 303.6 crore as licence fee obligation plus interest of Rs 1,711.44 crore, calculated up to March 2008.

(DoT had initially recovered Rs 50 crore from Hughes. By 2003, this climbed to Rs 303 crore as losses calculated on the basis of the licence fee that the company would have paid for the initial two years from 1997 (the year when the licence was acquired) to 1999 (when the licence was given up). Prior to 1999 operators had to pay a fixed annual fee and in this case the charges for two years amounted to Rs 303 crore.)

On its part, TTML informed the stock exchange that DoT’s counter claim has no merit whatsoever, and if admitted by TDSAT, it would contest it once again, as on the previous occasion.

“Based on the legal opinion taken by it, TTML does not expect any liability arising out of this counter claim, and therefore the sum claimed by DoT would continue, as in the past, to be shown as a contingent liability in the notes to the accounts,” TTML told the BSE.

TDSAT in its earlier order had said that DoT had never issued any notices to TTML for recovering the dues and as per law it should have taken appropriate proceedings.

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