DoT likely to file fresh petition before TDSAT to recover Rs 1001 crore from Etisalat

The Department of Telecommunications (DoT) is likely to file a fresh petition before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) for recovery of outstanding licence fee dues amounting to Rs 1001.16 crore from UAE-based telecom company Etisalat whose operating permits were quashed by the Supreme Court order that cancelled 122 telecom licences for alleged irregularities in allocation, according to a recent communication.

Etisalat held a 44.7% stake in Indian telecom operator Swan Telecom (renamed Etisalat DB), and it had operating permits in 13 circles. It had also merged Allianz Infratech with itself which had licences for Bihar and Madhya Pradesh. The merger was however not approved by DoT.

The company has demanded refund of the entry fee it paid for the Indian entity and release of bank guarantees that it submitted for the licences, after its licences were quashed.

Earlier DoT had said that it has returned bank guarantees of the company submitted for 11 out of 13 service areas and for rest of the service the matter is sub-judice. The company closed operations even before its licences were cancelled or surrendered and government for this reason imposed financial penalty of Rs 650 crore for 13 service area where it had permits, according to the DoT communication.

In February, 2012 Emirates Telecommunications Corp (Etisalat) had also written off about $820 million in value of its Indian operations by way of an impairment charge following the Supreme Court order.