BSNL quizzed over Data Access dues

Sidharth Ray's Data Access owes BSNL Rs 200cr.

The department of telecommunications (DoT) is examining whether Bharat Sanchar Nigam Ltd (BSNL) took adequate steps to recover dues from the Sidharth Ray-promoted Data Access.

The department has sought BSNL's comments on why it granted the now defunct international long-distance telecom company extensions of up to three months to clear its dues. The norm is 15 days. The DoT has also questioned BSNL's decision to accept post-dated cheques from Data Access, which bounced.

On its part, BSNL has said the steps it took were in the best interests of the company.

In November 2005, the Delhi High Court had ordered the winding up of Data Access because, with liabilities of over Rs 500 crore, the company was not in a position to do business. BSNL's dues from Data Access are around Rs 200 crore. Data Access also owes the government Rs 15.63 crore in licence fee.

This is not the only recent instance where BSNL and the DoT have been at loggerheads. BSNL has opposed the government's much-hyped OneIndia policy, which, it says, will set it back by Rs 4,500 crore. BSNL is also up in arms over a government move to try out the services of private telecom companies.

In this latest spat, BSNL has justified the extensions to Data Access saying a number of debt-restructuring plans sent to the government received no response. BSNL said delays in recovery in some circles were due to the inadequacies of its billing system.

Regarding Data Access' bounced cheques, BSNL said these helped recover Rs 88 crore and Rs 31 crore in two tranches.