DoT Holds Back on Coercive Action The Department of Telecommunications (DoT) has decided not to take any coercive action against the telecom companies. It is worth noting that in a normal scenario, the Department of Telecommunication would have sent show-cause notices to these telecom companies asking them why they have defaulted on the payment. However, that has not been the case right now because of an internal notification inside the DoT, after the finance wing decided not to do something like this. But, on Saturday, the Save Consumer Rights Foundation filed a PIL in the Supreme Court, asking to strike down the decision of the DoT to not take any action against the telecom companies. The consumer body said that the DoT could have encased bank guarantees which are in its possession and could have also cancelled the licenses of the telcos who had failed to pay their dues. Rajan Matthews, the Director-General of COAI, said, “The fact that it (the petition) does not have any reference to the other companies — besides operators — that are also included in this matter, appears to show mala fide interest to create problems, rather than solving it.” COAI Speculates Mala Fide Intentions Behind PIL Matthews also pointed out that even the non-telecom companies have to pay these AGR dues, but they have not been named in the petition. If the analysts are to be believed then if Vodafone Idea is made to pay its dues, then it will likely have to be shut down. The telecom company’s chairman also expressed similar sentiments saying that Vodafone Idea might have to shut shop if no relief comes its way. On the other hand, Bharti Airtel along with VIL are waiting for the result of a hearing on a modification petition which the telecom companies had filed seeking some relief from the Supreme Court. To recall, on October 24, the SC had passed the verdict on the AGR matter in favour of the government thus declaring that the definition of AGR would include non-core items as well. This has led to a situation where the telecom industry is under the burden of Rs 1.47 lakh crore of dues which are to be paid to the DoT.
