Business Companies 19 Jul 2018 DoT looks into Vodaf ...

DoT looks into Vodafone-Idea dues re-computation plea

FINANCIAL CHRONICLE
Published Jul 19, 2018, 9:43 am IST
Updated Jul 19, 2018, 9:43 am IST
The department has also asked Idea Cellular to furnish a combined bank guarantee of Rs 3,342 crore.
DoT is revising its cash demand of Rs 3,926 crore on Idea-Vodafone, which as per initial assessment could come down by Rs 400 crore.
 DoT is revising its cash demand of Rs 3,926 crore on Idea-Vodafone, which as per initial assessment could come down by Rs 400 crore.

New Delhi: The department of telecom (DoT) is revising its cash demand of Rs 3,926 crore on Idea-Vodafone, which as per initial assessment could come down by Rs 400 crore, after the duo pointed to some inconsistencies in the calculation.

The wireless planning finance of DoT is recalculating the demand after Idea-Vodafone requested revision of the cash demand on account of OTSC (one time spectrum charge). According to officials, there could be miscalculation of around Rs 400 crore.

 

By next week the correct figure is expected to be announced, sources said.

Speaking at an event here on Wednesday, telecom secretary Aruna Sundararajan said DoT is looking into Voda-Idea plea on dues re-computation.

“They (the companies) have come back to us saying there is some difference of opinion in calculation of dues. Vodafone and Idea Cellular have cited ‘some difference of opinion’ on the way dues have been computed by DoT,” she said. The department is “looking into” the issue and “we have not taken a view yet’, she added.

 

DoT had raised a demand of Rs 3,926 crore in cash pertaining to OTSC of Vodafone. The amount can be paid either by Idea or Vodafone. The department has also asked Idea Cellular to furnish a combined bank guarantee of Rs 3,342 crore.

Officials said Vodafone, under court and TDSAT direction had paid Rs 2,450 crore but the apportionment had not been done whether it was for OTSC dues or administrative spectrum dues.

They also said in case the companies think of going to court over OTSC, no court would stop due payment over outgoing administrative spectrum to the government. Supreme Court has already said the government has to receive money for spectrum. So any relief on OTSC cash demand is difficult, they said.

 

The companies have the option of challenging the bank guarantee part of OTSC. They can seek to pay it after the merger. Bharti got a similar relief in the Tata Tele and Telenor deal where it paid the bank guarantee after the deal was approved.

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
-->