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Telecom Giants Win Big: ₹10,500 Cr Spectrum Charge Axeed
9 Jun
Summary
- Court struck down one-time spectrum charges, impacting ₹10,500 crore.
- Bharti Airtel saw ₹8,414 crore demand set aside by the court.
- Vodafone Idea's ₹2,113 crore demand was also quashed, bank guarantees returned.
The Bombay High Court has ruled in favor of telecom operators Bharti Airtel and Vodafone Idea, invalidating one-time spectrum charge (OTSC) demands totaling over ₹10,500 crore. This significant verdict also mandates the return of bank guarantees furnished by the companies.
Bharti Airtel confirmed that a demand of ₹8,414 crore, initially raised in 2013 and revised later, has been set aside by the court. This includes charges related to its subsidiary, Bharti Hexacom.
Vodafone Idea announced that OTSC demands amounting to ₹2,113 crore, concerning erstwhile Idea Cellular and Spice Communications, have been quashed. The court directed the return of bank guarantees associated with these charges.
The legal dispute originated in 2013 when operators challenged the government's imposition of OTSC on spectrum holdings exceeding specified limits. The Bombay High Court's June 8 judgment found no legal basis for the retrospective levy, stating it altered existing license terms under the National Telecom Policy, 1999.
This victory offers substantial financial relief and improved balance sheet visibility for the telecom sector, which is currently facing intense competition and high regulatory dues.
