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DoT gets clearance to challenge order staying its demand for bank guarantees to approve Airtel-TTSL merger

August 29, 2019
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The Department of Telecommunications (DoT) has received a legal clearance for challenging the order which stayed its demand seeking over Rs 70 billion worth bank guarantees for approving the merger deal between Bharti Airtel and Tata Teleservices.

The clearance has been approved by the Assistant Solicitor General’s office, which has stated that dues from the carriers should be demanded.

The move might result in DoT challenging the Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) order that had allowed the two operators to utilise airwaves and had asked DoT to approve their merger.

In May 2019, TDSAT had partially stayed DoT’s demand for Rs 83 billion in bank guarantees for one-time spectrum charges (OTSC) on grounds that similar demands had been stayed in other merger cases in the industry by courts, including the Bombay High Court.

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