The Telecom tribunal stays DoT’s demand of Rs 1,376 crore from Bharti Airtel

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has stayed and directed the Department of Telecommunications (DoT) to not take any coercive steps against Airtel.

The telecom department had added up dues of Rs 1,376 crore against the Sunil Mittal-led Bharti telecom. These were unpaid past dues in the form of adjusted gross revenue (AGR) dues to the Centre owed by now-defunct telecom company Videocon Telecommunications.

In this matter, the tribunal has directed that the DoT must not take any coercive steps such as invocation or encashment of bank guarantee.

Videocon Telecom, which used to offer 2G services, had sold rights to use spectrum in the 1,800 MHz bands in six circles to Airtel in 2016 for Rs 4,428 crore.

However, Airtel said that while purchasing the spectrum from Videocon in 2016, the liabilities were known, and the full liability was of the seller (Videocon). On those grounds, Airtel said that it would not pay the AGR dues of Videocon.

Further, Airtel has argued that it has already paid more than 10 percent of its dues to the government.

The Supreme Court in its September 2020 AGR judgment held that any past liability related to the spectrum transfer under the spectrum trading guidelines will pass on to the buyer.

The matter has now been listed for hearing on November 16.

Meanwhile, Airtel continues to contend that it is not responsible for Videocon Telecom’s dues on account of the spectrum trading deal.

Airtel has claimed that the law states that the “seller must clear all dues prior to concluding any agreement for spectrum trading”. It had filed the petition against the DoT demand.

The Supreme Court had on August 24 had allowed the firm to go to the TDSAT for relief over the issue. It, however, categorically ruled that it will not review its AGR judgment.