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TDSAT reserves order on RCom plea against BSNL's ADC demand

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Press Trust of India New Delhi
Last Updated : Jan 25 2013 | 2:53 AM IST

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today reserved order on a plea by Anil Ambani group firm Reliance Communications (RCom), which has challenged state-owned BSNL's demand of access deficit charge (ADC) and disconnection notice for its walky service.

The TDSAT bench, headed by its Chairman Justice S B Sinha, reserved the order after hearing both the sides.

RCom has challenged a demand note issued by BSNL on December 30, 2010, asking it to deposit Rs 68 crore for two circles - UP West and Orissa - as ADC.

BSNL had also threatened to disconnect its Point of Interconnections (PoIs) if the ADAG group firm failed to meet the payment demand. The bill was raised for 2005-06.

PoIs between two operators are a must for subscribers to make and receive calls from different networks. ADC is a levy paid by private telecom operators for funding the PSU's rural and remote operations.

BSNL has already disconnected some of RCom PoIs for failing to pay the ADC within the required period.

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Senior counsel C S Baidyanathan, appearing for RCom, said the company disputes the charges imposed by BSNL as it had not provided call data record (CDR).

He also said that till the dispute was settled, no interest should be charged. However, the state-firm has charged a hefty amount of about Rs 41 crore as interest, he added.

Baidyanathan said the agreement between BSNL and RCom didn't provide that interest shall be charged at a rate of 25,000 per month and contended that it could charge a maximum rate of 24%.

RCom is ready to pay the principal amount demanded by BSNL as ADC, he said.

However, Pratibha Maninder Singh representing BSNL said that it is settled principle that walky is a mobile service and RCom was not entitled to raise disputes regarding the principal amount, and interest, after a period of five years.

She also added that the bill had been raised 5 year ago and RCom was aware of its liability. RCom has deliberately delayed the payment and now is liable to interest.

Singh said that if RCom wanted PoI reconnected, then it would have to pay the entire amount along with reconnection charges.

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First Published: Feb 03 2011 | 9:12 PM IST

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