SC asks RCom to deposit 50% of increased spectrum usage charge

SC asks RCom to deposit 50% of increased spectrum usage charge

The Supreme Court has directed two Anil Ambani group firms Reliance Communications and Reliance Telecom to deposit 50 percent of the increased spectrum usage charge demanded by DoT and to submit a bank guarantee for the rest within two weeks.

A three-judge bench headed by Chief Justice S H Kapadia also issued notice to DoT directing it to file reply over enhancing spectrum usage charge.

"The Operator - Reliance Communications Ltd will deposit fifty per cent of the outstanding principal amount net of interest in the Supreme Court Registry within a period of two weeks," said the bench, which also consisted justices K S Radhakrishnan and Swatanter Kumar.

It further said, "The balance fifty per cent of disputed outstanding amount net of interest will be secured by way of Bank guarantee of a Nationalised Bank to be given within a period of two weeks".

The apex court has directed to tag the Rcom and R Tel's appeal with the other telecom operators -- Vodafone, Bharti Airtel, Bharti Hexacom (operating in Rajasthan), Idea Cellular and Uninor -- which have challenged DoT's increasing the usage charges 3-8 per cent of adjusted gross revenue, depending on quantum of spectrum held by an operator.

It has also asked Managing Director of the two firms to "give an affidavit to the effect that, in the event of Civil Appeal being dismissed, it will pay the balance amount with interest".

Besides, it has directed RCom to file a chart of the principal amount, which is outstanding before the registry of the Supreme court within one week.

The court also warned, "We make it clear that if there is a breach of any of the afore-stated conditions, the impugned order will come into force with immediate effect".

The ADAG group firms are challenging the order of the sectoral tribunal TDSAT, which had declined to stay DoT's hike in the spectrum usage charge.

The DoT had asked the two ADAG group firms to deposit Rs 94 crore for the spectrum charges as per the new rules.

On 22nd October, the Supreme Court had stayed the TDSAT order upholding a hike in 2G telecom spectrum (radio waves) usage charges, but had asked Bharti, Vodafone and Idea to deposit with it 50 per cent of the proposed increase in fee with court's registry.