Telcos to pay part of disputed dues before filing case

Concerned at the large amounts of money blocked on account of litigation, the government is set to amend the law to ensure that at least a certain amount of disputed demand is deposited by the telecom  companies before the case is admitted by TDSAT.     

"Expressing concern over the outstanding dues on account of cases pending in TDSAT, Department of Telecom directed the WPC to submit a proposal for amending the relevant Act to ensure that at least a certain amount of the disputed demand is deposited by the concerned service providers before case being admitted by TDSAT," a DoT note said.     

The system prevalent in appeals in the income tax department may be examined in this context, it said.     

This has become necessary as telcos are avoiding payment of dues which they claim before DoT that they are about to challenge the direction so would not pay a decision come out. This way, they have been able to avoid huge amount of payments to the government.     

A DoT official said Wireless Planning Council's Finance division will start working on the changes to the Act and by July the modifications would happen.     

The department is currently compiling the number of cases against DoT by the private players in TDSAT and the total quantum of the blocked dues, officials said adding some of the dues pertained to the old licences.