Govt seeks to recover Rs 2,000 cr from TTML

In its petition, the DoT said that Tatas had bid for licence to provide basic telecom services in Maharashtra and Karnataka circles in 1995. The company, however, did not honour its commitments on payment of licence fees for Karnataka circle.

TTML did not sign the licence for Karnataka circle, the DoT petition said, adding that the company, however, requested many times for grant of extension for signing of the licence agreement.

In a notice to the stock exchanges, TTML said, "The company understands that DoT, after a delay of almost five months, has filed an application with TDSAT, requesting it to condone the delay and allow it to file a counterclaim of Rs 2,015 crore. TDSAT is likely to hear on Monday the DoT application for condoning the delay and the company will oppose the delayed filing of this counterclaim."

The counterclaim merely updates the earlier counterclaim alleging loss of licence fee of Rs 303 crore, and re-calculates as Rs 1,711 crore the loss of the interest for the intervening period since the last hearings before TDSAT in 2003, to arrive at a sum of Rs 2,015 crore.

"Based on a legal opinion, TTML does not expect any liability arising out of this counterclaim and, therefore, the sum claimed by DoT will continue as in the past to be shown as contingent liability in the notes of the accounts," the company added.

Originally, a letter of intent (LoI) was issued to Hughes Ispat in 1997 for basic service in Maharashtra and Karnataka. This company was later acquired by Tata Teleservices.

Hughes Ispat paid the fee and converted the Maharashtra LoI into licence and started the service, which is being provided under TTML brand name.