Skip to main content

Supreme Court asks Tata Tele, RCom to pay Rs 700 cr to BSNL

(The Hindu Business Line 1st May 2008)
In a blow to Tata Teleservices and Reliance Communications, the Supreme Court has asked the two companies to pay up Rs 700 crore to Bharat Sanchar Nigam Ltd as access deficit charges on limited mobile phones.
The two companies had argued that since limited mobile phones were being provided under the fixed line telephone licence, they were not liable to pay the charges to BSNL.
However, the apex court has upheld the order given by the telecom tribunal in 2005 that limited mobile phones could not be treated as fixed line phones and is a wireless mobile service and, therefore, the companies will have to pay the charges.
Though ADC has been abolished now, in 2005 the Government had said that fixed line service providers need not pay the charges. Following the court’s order, the two companies have to pay the outstanding charges to BSNL for the past few years. ADC was a levy imposed on private operators for funding BSNL’s rural telephone schemes.
A bench headed by Mr Justice H. S. Kapadia dismissed Tata Teleservices and Reliance Communications’ petitions challenging the Telecom Dispute Settlement and Appellate Tribunal’s order, which held that its fixed wireless telephone was equivalent to mobile service and thus Reliance was liable to pay ADC of over Rs 400 crore. The Tatas will have to cough up Rs 300 crore.
“We are yet to receive a copy of the said court order and await the same. As the matter involves the Supreme Court, we would not like to comment further until we receive this order and study it at length,” a spokesperson for Tata Teleservices Ltd said.
Reliance Communications said that the ruling will not put any additional burden on the company. “The case pertains to the period 2002-03, prior to the reorganisation of Reliance Communications and has been fully provided for in the previous fiscals. There is no additional liability on the company following the judgment,” a company spokesperson said.

Comments

Popular posts from this blog

Jyoti Structures bags Rs 253 cr worth orders

Jyoti Structures on Tuesday said it has bagged two orders worth Rs 253 crore from Uganda Electricity Transmission Company Ltd and Eskom Enterprises (Pty) Ltd for construction of transmission lines. The company has bagged Rs 160-crore order from Uganda Electricity Transmission Company Ltd for construction of transmission lines and sub-stations. Besides, the company's joint venture company Jyoti Structures Africa (Pty) Ltd has bagged a contract for Eskom Enterprises (Pty) Ltd, the electricity utility of South Africa for construction of transmission line. The scope of the order from Uganda Electricity Transmission Company includes supply and erection of Bujagali Interconnection Project, the manufacturer of transmission line towers informed the Bombay Stock Exchange. The contract valued at around $39.64 million (Rs 160 crore) is to be executed in 24 months, the company said, adding the company would construct 220 kV and 132 kV transmission lines and substations.

Day End Report

The Sensex opened with a positive gap of 317 points at 9,362, on the back of on-going pull-back in the market. Intra-day profit taking saw the index pare gains during the day, the Sensex however ended on a firm note at 9,788 - up 744 points With today's gain, the main index of the Bombay Stock Exchange, the Sensex, gained over 27% (2,091 points) from it's Monday low of 7,697. However, the index was down almost 24% (3,072 points) for the month, and down nearly 52% (10,499 points) so far this year. The BSE Metal index surged over 10% to 5,368, and Oil & Gas index soared over 9% to 6,196.   The market breath was fairly positve - out of 2,575 stocks traded, 1,577 advanced, 915 declined and the rest were unchanged today. Mahindra & Mahindra zoomed 23% to Rs 372. HDFC soared 17.5% to Rs 1,765, and Jaiprakash Associates surged 16.5% to Rs 72. ICICI Bank rallied 15.5% to Rs 399. Sterlite gained 14.5% at Rs 282. Reliance and Reliance Communications moved up 13.8% each to Rs 1,37...

Market ends quiet on the first day

Market Closing Report - Source Moneycontrol.com Sensex closed up 13.72 points or 0.07% at 20300.71, and the Nifty up 5.75 points or 0.09% at 6144.35. About 2418 shares have advanced, 651 shares declined, and 36 shares are unchanged. The BSE Bankex was up 1% at 11,510.31. IOB, Allahabad Bank, Centurion Bank, Andhra Bank, Karnataka Bank closed in green. The BSE Capital Goods Index closed flat at 19,747.80. Greaves Cotton, Kirloskar Oil, Astra Microwave, Reliance Infra closed higher. The BSE Auto Index closed at 5,716.49 up 1%. Hind Motors, Apollo Tyres, Exide Industrie, Bharat Forge, Tata Motors closed higher. The BSE Metal Index closed at 20,061.49 up 0.2%. Mah Seamless, JindalStainless, Jindal Saw, SAIL, Jindal Steel closed higher The BSE FMCG Index closed up 2.4% at 2,375.07. ITC, Marico, Tata Tea, Dabur India, HUL, Godrej Consumer ended higher BSE Oil and Gas Index closed at 13,280.88 down 0.2%. Essar Oil, Petronet LNG, Reliance Petro, ONGC ended higher. The BSE IT Index was at 4,471...