TDSAT bars DoT from taking action against Tata Comms over Rs 6,159 cr fee demand

The telecom tribunal has told the Department of Telecommunications (DoT) not to take any coercive action against Tata Communications in relation to the Centre’s Rs 6,159 crore licence fee demand from the company pertaining to past years.

“The DoT, through a demand letter, dated August 17, 2023, had raised certain licence-fee demands of Rs 6,159 crore (of which, enforceable demand is of Rs 3,785 crore and Rs 2,374 crore, realisable based on outcome of the (case) pending before the Supreme Court), pertaining to NLD, ILD, ISP-IT and UL-ISP licenses of the company for the periods FY2009-to-2022 (excluding FY2010 (NLD), FY2011 (ISP-IT) and FY2022 (UL-ISP),” Tata Communications said in an exchange filing Tuesday.

The company added that these demands had been challenged before the Telecom Disputes Settlement & Appellate Tribunal (TDSAT), which in its order, dated August 28, had directed DoT not to take any coercive action till the next hearing.

On the expected financial implications, Tata Communications added that this has already been considered as “part of contingent liabilities” for the quarter ended June 30, 2023.

Tata Communications shares closed 0.6% lower at Rs 1,787 on BSE Tuesday. Japane Top News