GAIL India Limited, in its reply to a notice by Securities and Exchange Board of India (SEBI) over non-disclosure of Department of Telecommunications’ (DoT) assessment orders/demand notices, has said that the demand was not legally tenable.
To this end, GAIL informed SEBI on May 6, 2020, that it did not consider DoT’s notice seeking Rs 1.83 trillion in past dues as material event warranting disclosure to stock exchanges as the amount in the provisional assessment was considered not payable.
As per the company’s regulatory filing, the amount assessed in provisional assessment orders is not payable, being unrelated matter to the terms and conditions of the IP-II licence obtained by the company and hence is also legally not tenable.
Further, GAIL said it had refuted the provisional assessment orders of DoT and sought its withdrawal.
On May 5, 2020 SEBI had issued a caution letter to GAIL for non-disclosure of material events/information. The regulator said listing regulations require companies to disclose material information as soon as reasonably possible.
The DoT sent a notice to GAIL soon after the February 14, 2020 hearing in the Supreme Court (SC) on dues owned by telecom companies. For GAIL, the DoT assessed an outstanding of Rs 1.83 trillion towards annual licence fee in respect of IP-II Licence which included interests and penalty.