Tata Communications challenges DoT's Rs 991.5 cr demand in TDSAT; tribunal says no coercive action till next hearing

The Department of Telecom (DoT) in its demand letter dated August 8, 2023, has raised certain license-fee demands of Rs 991.54 crore pertaining to FY 2006-07 and FY 2007-08.

Tata Communications has challenged Telecom Department's Rs 991.5 crore licence fee demand pertaining to past years, in TDSAT, which has directed the DoT not to take any coercive action till the next hearing, the company said in a filing on Friday.

The Department of Telecom (DoT) in its demand letter dated August 8, 2023, has raised certain license-fee demands of Rs 991.54 crore pertaining to FY 2006-07 (international long-distance and internet service provider) and FY 2007-08 (NLD, ILD and ISP).

'These demands have been challenged by the company before...TDSAT (Telecom Disputes Settlement and Appellate Tribunal), wherein after hearing both the parties, ...TDSAT, vide its order dated 14 August 2023 received by the company on 17 August 2023, has directed DoT not to take any coercive action till the next hearing,' Tata Communications said in a BSE filing.

The company further said it has already included the amount in dispute as part of the notes to accounts in the quarterly financial results for the June 2023 quarter.

'This has already been considered as part of contingent liabilities for the quarter ended 30 June 2023,' the filing said.