HC rejects Koshika, Aircel plea

NEW DELHI, MAY 27: The Delhi High Court today rejected cellular operators Koshika Telecom and Aircel Digilink's prayer for interim relief...

NEW DELHI, MAY 27: The Delhi High Court today rejected cellular operators Koshika Telecom and Aircel Digilink8217;s prayer for interim relief to lift the jam on interconnection to the companies in certain parts of the country and posted the case for final hearing on June seven.

Justice M K Sharma said since the licence fee payment offers made by the two companies were not acceptable to the department of telecom DoT, no interim orders could be passed for restoration of interconnection. The DoT had withdrawn interconnection facility to the companies on Saturday last.

Koshika and Aircel Digilink are likely to file appeals against this order before a division bench of the high court tomorrow, the company sources said.

The court issued notices to DoT and communications ministry, which was accepted by senior government counsel Rakesh Tiku, and asked them to file reply by June three.

Aircel Digilink counsel A M Singhvi offered to pay 20 per cent of the licence fee dues for Rajasthan and Haryana Telecom circlesin cash quot;without touching its bank guaranteesquot; which was rejected by DoT.

Singhvi contended that DoT should accept the offer of 20 per cent payment being made by the two companies keeping in mind several orders passed by different benches of the high court in March and April in this regard.

DoT counsel and additional solicitor general Kirit Raval reiterated that restoration of interconnection was possible only after the payment of 25 per cent of licence fee dues in cash, bank guarantee for remaining 75 per cent and an undertaking to pay current fee regularly.

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DoT has withdrawn interconnection facilities to Koshika in western Uttar Pradesh, Orissa and Bihar circles which resulted in disruption of its services since Saturday evening.

The interconnection facilities to Aircel Digilink was withdrawn by the department in Haryana and Rajasthan circles. DoT has not withdrawn interconnection to the two companies in eastern Uttar Pradesh circle.

Eastern Uttar Pradesh circle has been spared because Koshika andAircel Digilink are the rival operators there and withdrawal of interconnection would have left subscribers with no option. Koshika and Aircel Digilink owe DoT Rs 405.93 crore and Rs 264.45 crore respectively as licence fee.