DoT rejects Qualcomm offer to secure Tulip's dues
SBI has a Rs 200-crore exposure distributed equally between two companies which entered the telecom fray in the spectrum allocation carried out in 2008, Chaudhuri said.
The Department of Telecom (DoT) has rejected the Qualcomm's offer to secure the dues of its partner Tulip Telecom to hasten the process of issuing license and spectrum for BWA services to the US-based chip-maker.
In its reply, the DoT has informed the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that Qualcomm cannot secure the dues of its partner by way of bank guarantee.
The DoT further contended that it was a matter of revenue and it cannot be secured by bank guarantee.
During the proceedings of the tribunal, counsel appearing for Qualcomm sought time to take instruction from the client on the matter.
Following that TDSAT adjourned the matter to next Tuesday for hearing.
DoT's reply has come over TDSAT's direction file reply over Qualcomm's undertaking and plea.
Tulip is a 13 per cent shareholder in the consortium which had bid for Broadband Wireless Access (BWA) spectrum along with Qualcomm. As per the rules, operators have to get a no-dues certificate from DoT for obtaining the licenses.
In December, DoT had issued a show-cause notice to Tulip claiming a due of Rs 146 crore for 2009-10 and 2010-11.
Earlier, Qualcomm had offered before TDSAT that it would file an undertaking along with an affidavit to clear the dues of its Indian partner.
Qualcomm had challenged the DoT notice for cancelling the allotment of BWA spectrum in four circles that it bagged last year through auction.
Qualcomm's application for license was rejected by DoT on the basis that it had made four nominees for the spectrum.
The company feared that its license may be revoked and spectrum may be allotted to someone else.
On December 2, Qualcomm had sought time to verify the authenticity of the dues claimed by DoT and said if that was correct, then would pay it.
DoT had also informed the TDSAT that if the dues were verified and cleared by them, then the ISP license would be given to Qualcomm within a day.
DoT had further submitted that after the grant of ISP license, Qualcomm would have to apply for spectrum and it would be given in two weeks.
Qualcomm had bagged BWA spectrum for Delhi, Mumbai, Haryana and Kerala circles.