TDSAT asks DoT not to encash guarantees of Loop, Etisalat -Governance Now

TDSAT asks DoT not to encash guarantees of Loop, Etisalat

Loop, Etisalat argue that they have completed their roll-out obligation in their respective circles

PTI | December 9, 2011

Telecom tribunal TDSAT has directed DoT not to encash or seek the renewal of performance bank guarantees (PBGs) by Loop Telecom and Etisalat DB.

In an interim order over two separate petitions filed by Loop Telecom and Etisalat, the Telecom Disputes Settlement and Appellate Tribunal said that till its further direction, DoT would not demand any new bank guarantees from them.

The petitions sought TDSAT directive to the Department of Telecom for the release of PBGs submitted in lieu of spectrum allotted to them, claiming they have rolled out the networks.

The tribunal has listed the matter on December 22 for next hearing.

Senior advocate Ramji Srinivasan represented both Loop and Etisalat, while DoT was represented by Manisha Dheer.

Loop Telecom, which has been allotted licences for 21 circles, submitted before the tribunal that it has completed its roll-out obligations and as per the terms and conditions, its PBG should now be released.

It further submitted that its PBG was slated to expire in the first week of December and requested the tribunal to give interim protection, as DoT may take some action against it.

Etisalat DB had approached the tribunal with the argument that as per Unified Access Service Licence (UASL) terms and conditions, their PBG should be released.

Etisalat DB, a JV between DB realty and UAE-based telecom major Etisalat, has contended that it has completed roll-out obligations in 11 circles and PBGs amounting to Rs 160 crore that were submitted at the time of spectrum allotment should now be released.

Etisalat had given PBG of Rs 212 crore for spectrum allotted to it in 15 circles.

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