Govt accepts Qualcomm offer to clear Tulip's dues

US firm to be given broadband licence

The government on Friday accepted the Qualcomm offer, made before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), to clear Rs 410 crore dues of its Indian partner Tulip Telecom, and said the US-based firm will be given the wireless broadband licence.

Tulip, however, said in a regulatory filing to stock exchanges the offer to clear its dues was made by Qualcomm suo-motto and it is not a party to the petition filed by the US-firm and "has not, therefore, accepted any liabilities".

During the proceedings at the telecom tribunal, the counsel appearing for the Department of Telecom (DoT) told TDSAT that Qualcomm's offer was acceptable, although with some modifications.

TDSAT then directed DoT to dispose of Qualcomm's application for Broadband Wireless Access (BWA) licence and expeditiously allot the spectrum for providing BWA services.

TDSAT has directed Qualcomm to deposit Rs 410 crore as demanded by DoT from Tulip, within four weeks.

Tulip holds a 13 per cent stake in the consortium which had bid for BWA spectrum along with Qualcomm. In December, DoT had issued a show cause notice to Tulip claiming dues for 2006-11.

Maneesha Dhir, representing DoT informed the tribunal that the government is ready to give ISP licence to Qualcomm, but it would not pay interest if the amount is returned in case of any settlement with Tulip Telecom.

Following it, TDSAT asked the DoT to grant the license to Qualcomm within a week from the date of deposit of the dues.

It waived DoT demand to take an undertaking from Tulip that Qualcomm is paying on it behalf. However, Tulip on Friday informed the Bombay Stock Exchange that it is not a party to the dispute.

Meanwhile, on apprehensions of Qualcomm that DoT may delay the allocation of BWA spectrum, TDSAT said that it should apply in accordance with the terms of the notice inviting applications.

TDSAT said it hopes and trusts that the government will not adopt "any adversarial approach".

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 and said that if found to be correct, then it would pay up.