Qualcomm offers to clear Rs 410-cr DoT dues of Tulip

US-based Qualcomm today said it would clear Rs 410 crore dues of its Indian partner Tulip Telecom on the condition that the government will allot it the licence and spectrum for wireless broadband services.

Telecom tribunal TDSAT, which is hearing Qualcomm plea against the Department of Telecommunications (DoT) on the cancellation of BWA licence on technical grounds, asked the company to submit its proposal to DoT, which will have to respond by Friday -- the next date of hearing.

The TDSAT directive was given by the bench, headed by its Chairman Justice SB Sinha.

Earlier, DoT had rejected Qualcomm's offer to secure the previous Rs 146 crore dues of Tulip through bank guarantees.

The counsel appearing for Qualcomm informed the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that the company had no option except to pay the dues of Tulip to get the Broadband Wireless Access (BWA) spectrum.

"We are ready to pay Rs 410 crore. We have no choice," said Nanju Ganpathy, appearing for Qualcomm, adding, "We are pushed to walls."

He sought 4-week time to pay Rs 410 crore dues of Tulip, which include previous demand of Rs 146 crore and a fresh demand of Rs 264 crore by the government.

Ganpthy also said that in earlier hearings, DoT had assured them that licence would be issued to them within 48 hours if the dues are cleared.

He said the company wants time bound clearances. The tribunal, however, asked the company to hand over a written proposal to DoT first, and await their response.

Tulip is a 13% shareholder in the consortium which had bid for BWA spectrum along with Qualcomm. As per the rules, operators have to get a no-dues certificate from DoT for obtaining the licences.

In December, DoT had issued a show-cause notice to Tulip claiming dues of Rs 146 crore for 2009-10 and 2010-11.

Qualcomm had challenged the DoT notice for cancelling the allotment of BWA spectrum in four circles that it bagged last year through auction for about Rs 4,900 crore. It had bagged spectrum for Delhi, Mumbai, Haryana and Kerala circles and LoIs were allotted to it.

Qualcomm's application for licence was rejected by DoT on the basis that it had made four nominees for the spectrum.

On December 2, Qualcomm had sought time to verify the authenticity of the dues claimed by DoT and said if that was correct, then would pay it.