Infocomm must pay BSNL in a week: SC

Rejecting Reliance Infocomm's plea that it be allowed to furnish a bank guarantee for Rs 84.7 crore, the Supreme Court today asked the company to pay the amount to Bharat Sanchar Nigam Limited (BSNL) within a week. If the sum is not paid by that time, BSNL will be entitled to withdraw its services to Reliance Infocomm.

The Delhi High Court will hear on January 13 the dispute between BSNL and Reliance Infocomm over the alleged re-routing of international calls as local calls.

BSNL had demanded Rs 182. 7 crore from Reliance Infocomm for the evasion of the access deficit charge. The company has already paid Rs 98 crore after the high court took up the case.

When BSNL appealed against the interim order of the high court on some points, the Supreme Court, on December 3, asked Reliance Infocomm to clear the entire amount before the high court started the hearing the case.

The company then wanted to furnish a bank guarantee but the Bench, consisting of Justice Santosh Hegde and Justice SB Sinha, rejected this plea.

Reliance Infocomm's advocate Harish Salve informed the court that the company had calculated the amount and had found that the actual default amount was Rs 29 crore and the rest was only penalty. However, BSNL opposed even the extention of time for payment requested by Reliance Infocomm.

The Supreme Court, at the last hearing, had fixed January 31 as the deadline for the high court to give its judgment in the petition moved by Reliance Infocomm, challenging the demand of BSNL. According to the company, it did not do anything wrong, and followed what other telecom companies were doing.