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1/3/2005

SC rejects Reliance request

Reliance Infocomm has to pay Rs.847 millions towards Access Decicit Charges (ADC) to BSNL. Supreme court today gave these orders after rejecting the request of Reliance Infocomm to furnish a bank guarantee for the outstanding amount. Out of a demand of Rs 1.82 billion demanded by BSNL, which had alleged that the Reliance Group Company had evaded revenue by re-routing international calls as local ones, the private telecom operator had paid up Rs 980 million.

Giving the extension of time for the payment, a Bench comprising Justice N Santosh Hegde and Justice S B Sinha said it could not alter its December 3 order directing Reliance Infocomm to pay up the entire demand of Rs 1.82 billion before the company’s petition was heard by the Delhi High Court.

Appearing for the Reliance group company, senior advocate Harish Salve said the company has calculated the default to be only Rs 29 crores and as it has already paid Rs 980 million, it be allowed to secure the outstanding amount of Rs 847 million through bank guarantees.

Opposing the application, senior advocate Soli J Sorabjee and advocate Maninder Singh contended that the petition, as directed by the apex court, would be heard by the High Court on January 13 and the December 3 order should not be relaxed.

They even opposed the extension of time for the payment of Rs 847 million but the Bench said that if Reliance Infocomm did not pay it up within one week, BSNL would be free to take action, including disconnection of services.

The apex court had fixed January 31, 2005, as the outer limit for the High Court to give its verdict on the petition filed by Reliance challenging the demand of Rs 1.82 billion made by BSNL. Source PTI

More: Business News

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