Spectrum dues: DoT seeks time before Supreme Court to reconsider pursuing an appeal against telcos owing to financial burden on sector

The Department of Telecommunications (DoT) has filed an affidavit before Supreme Court seeking an adjournment of 3 weeks since it is reconsidering its decision of challenging the order of Telecoms Disputes Settlement and Appellate Tribunal (TDSAT) which held that OTSC on spectrum could be levied prospectively and not retrospectively.

The tribunal order in April 2019 was passed on the issue of recovery of one-time spectrum user charges (SUC) from companies to the tune of INR 40,000 crore

The affidavit states that subject to the adjudication by the Supreme Court, a financial liability of Rs.40,000 crores would be levied against various Telecom Service Providers (TSPs).

It further states that the telecom sector is passing through a difficult phase and despite some reliefs granted to the sector by the government, it is incurring losses.

According to the affidavit, Indian Bank Association has conveyed to the government that such adverse developments in the sector may lead to failures, vanishing of competition and severe loss for the banking system which has lent extensively to the sector.

The affidavit also mentions that the central cabinet on 15.09.2021 took various decisions to ensure that there is competition among TSPs and a monopolistic situation is averted.

The matter came up today before a bench of Justices MR Shah and A.S.Bopanna, the court on perusal of the affidavit held that it was adjourning the matter to 17.11.2021 without expressing anything on such proposed action/decision which might have a larger implication.

On August 24, the top court had asked Bharti Airtel to approach the Telecom Dispute settlements and Allellate Tribunal (TDSAT) against the payment of Adjusted Gross Revenue (AGR) dues of Videocon Telecommunications Ltd.

The application had been filed by Bharti Airtel challenging the communication received by the Department of Telecommunication for encashment of bank guarantee in relation to default in payment of AGR dues, however, Airtel alleged that the dues are of Videocon Telecommunications Ltd.

Case title: Union of India Vs Reliance Communication Etc