Big relief to Airtel and Vi, Bombay High Court cancels claims worth crores related to spectrum charges

Knews Desk– The country’s two major telecom companies Bharti Airtel and Vodafone Idea (Vi) have got big relief from the Bombay High Court. The court has rejected the claims related to One Time Spectrum Charge (OTSC) imposed by the Department of Telecommunications (DoT). With this decision, both the companies are expected to get relief from the potential liability of thousands of crores of rupees.

The case was related to spectrum allocation and its usage charges under the National Telecom Policy in the year 2012. The Department of Telecommunications had decided to impose one time spectrum charge on companies for using additional spectrum. Under this, notices were issued to many telecom companies including Airtel and Vodafone Idea to make huge payments.

The companies had challenged these demands in court. His argument was that there were many flaws in the calculation and process of fee imposed by the government and it was not in accordance with the rules. After a long-running hearing, the Bombay High Court ruled in favor of the companies.

The court said that the demands in question did not have any proper basis in law and the claims issued by the department could not be sustained. After the decision, a positive atmosphere has been seen in the telecom sector. Investors believe that this will provide some relief to companies already facing financial pressure.

This decision is considered important especially for Vodafone Idea, because the company is already struggling with the burden of heavy debt and AGR liabilities. At the same time, Airtel will also get relief from possible financial risk.

Experts say that this decision of the High Court can become an important example for the telecom industry. However, if the government wishes, it can approach the higher court in this matter. At present, this decision is being seen as a big legal and financial victory for Airtel and Vodafone Idea.