The Department of Telecommunications (DoT) has filed a petition in the High Court challenging the Telecom Disputes Settlement and Appellate Tribunal?s (TDSAT) decision to set aside a penalty imposed by the department on Qualcomm.
Earlier, DoT had reduced the validity of broadband wireless licence held by Qualcomm from 20 years to 18 years and six months on allegations that Qualcomm did not comply with the eligibility conditions specified in the auction tender document. In 2010, Qualcomm had participated in the broadband wireless access (BWA) spectrum auctions and won spectrum in four circles including Delhi, Mumbai, Kerala and Haryana. But DoT did not allocate the spectrum to the company on the grounds that there were several issues with Qualcomm?s application which led to delays.
Subsequently, Qualcomm took the matter to TDSAT which overruled DoT?s decision to reduce the tenure of Qualcomm?s licences. Meanwhile, DoT raised a demand on Qualcomm?s joint venture partner Tulip Telecom for Rs 4.1 billion. This was contested by Tulip Telecom but since this was further delaying the allocation of licence, Qualcomm offered to clear Tulip Telecom?s dues. Following these developments, TDSAT asked DoT to issue BWA licences to Qualcomm within seven days of making the payment of Rs 4.1 billion. The tribunal also stated that DoT will have to refund the money in case Tulip Telecom is not found liable to face the penalty.
However more than a year has elapsed, and the DoT has not reassessed Tulip Telecom?s taxes as per TDSAT?s order.
