HC orders two cell cos to submit payment plans

NEW DELHI, MAY 24: The Delhi High Court today asked two cellular operators 8211; Koshika Telecom and Aircel Digilink to submit to Department of Telecom DoT their proposals for payment of 20 per cent of licence fee by this evening.Justice M K Sharma also directed DoT counsel Rakesh Tiku to obtain instructions from DoT whether the proposals were acceptable to it by Tuesday when the matter will be taken up for hearing.

The court order came on separate petitions filed by Koshika and Digilink challenging DoT8217;s withdrawal of interconnection facilities to them for default in payment of licence fee. A M Singhvi, counsel for Koshika, proposed to pay 20 licence fee of the total outstanding of Rs 405 crore through encashment of its bank guarantees. He said the amount payable to DoT on account of 20 per cent licence fee would be Rs 70.60 crore while the company has the bank guarantees worth Rs 80 crore. DoT had withdrawn the interconnection facilities to the companies on Saturday evening which resulted in breakdown ofKoshika8217;s services in western Uttar Pradesh, Bihar and Orissa.

The DoT action has also led to disruption of Aircel Digilink operations in Haryana and Rajasthan. Koshika counsel had pleaded that the court should direct DoT to restore the interconnection facilities to his client so that a large number of subscribers were not subjected to inconvenience. But the court refused to say anything on this. Singhvi said the DoT disconnected the facility without passing any order.