Why Modi government has demanded ₹7,800cr from Tata Communications
What's the story
The Department of Telecommunications (DoT) has issued a demand notice of around ₹7,800 crore to Tata Communications. The notice pertains to adjusted gross revenue (AGR) dues for the period between 2005-06 and 2023-24. In an official note, Tata Communications Managing Director AS Lakshminarayan revealed that the company had received such notices from DoT totaling ₹7,827.55 crore as of June 30 this year.
Explanation
Notices include disallowance of deductions claimed by Tata Communications
Lakshminarayan further explained that these demand notices include ₹276.68 crore for disallowance of deductions claimed by Tata Communications on a payment basis. This was for FY 2010-11 under the Internet Service Provider (ISP) license, and FY07 and FY10 under the National Long Distance (NLD) license. The company has pending appeals related to its International Long Distance (ILD), NLD, and ISP licenses at both Supreme Court and telecom tribunal TDSAT levels.
Legal stance
Company's appeals not covered by SC judgment
The company's appeals aren't covered by a SC judgment dated October 24, 2019, on AGR under the old telecom license regime called UASL. Lakshminarayan asserted that all their licenses are different from UASL. He added that based on their assessment and independent legal opinions, they believe they shall be able to defend their position effectively.