Tata Communications Challenges Rs 991.5 Crore DoT License Fee Demand, TDSAT Grants Stay

21 Aug 2023 , 10:23 AM

Tata Communications disputes a license fee demand of Rs 991.5 crore from the Department of Telecom (DoT) for previous fiscal years. The challenge has been lodged with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

TDSAT orders the DoT to refrain from coercive actions until the next hearing, following arguments from both parties. The DoT’s demand, issued on August 8, 2023, relates to license-fee claims for FY 2006-07 (international long-distance and internet service provider) and FY 2007-08 (national long-distance, international long-distance, and internet service provider).

Tata Communications discloses in a filing that the TDSAT’s directive prevents any coercive action by DoT. The disputed amount has been included in the company’s financial results for the June 2023 quarter under contingent liabilities. The ongoing legal challenge highlights the complexities of regulatory compliance and financial protection in the telecommunications sector.

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