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Tata Comm Makes No Provision For Rs 6,633 Cr AGR Dues As Matter Sub-Judice

Tata Communications, in which the government holds 26.12 per stake, on Wednesday said that it has made no provision for the telecom department”s demand of Rs 6,633 crore for AGR dues as the Supreme Court order did not include appeal of the company which is still pending before the court.The company said that it has replied to the demand cum notice sent by the DoT in the second quarter ended September 2019 but it has not received any response from the department.

The Supreme Court has upheld DoT method of calculating revenue share between telecom companies and the government in its order dated October 24, 2019. Based on this order, DoT estimates that telecom companies are required to jointly pay around Rs 1.47 lakh crore by January 23.

The DoT is learnt to have given no relaxation to the companies on the payment of AGR dues.

Tata Communications said that it has received demand of Rs 6,633.43 crore from the Department of Telecom towards licence fee on its adjusted gross revenue for the financial year 2006-07 till 2017-18

“The company has existing appeals relating to its ILD and NLD licences which were filed in the past and are pending at the Hon”ble Supreme Court and Hon”ble Madras High Court and the company”s appeals is not included in the Hon”ble Supreme Court ruling of October 24, 2019,” the company said in its financial report.

The company said that it believes that all its licenses are different from unified access services licence which was the subject matter of Supreme Court judgement.

“The company has responded to the DoT denying and disputing the amounts claimed by the DoT in the demand cum show cause notice. The company has not received any response from the DoT after the submission,” the note said.

Tata Communications auditor in the note said the company is of the view that it will be able to defend its position and has obtained a legal opinion in this regard.

“Currently the financial results do not include any adjustment pertaining to the same,” the auditor note said.

Tata Communications on Wednesday posted around 66 per cent dip in consolidated profit after at Rs 58.85 crore in the third quarter ended December 31, 2019. – Outlook India

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