DoT issues revised demand notices to six telcos for Rs 30,776 crore

NEW DELHI: The government of India has issued revised demand-cum-show cause notices for Rs 30,776 crore to 6 telecom firms for under-reporting revenues in four fiscal's up to 2009-10, Parliament was informed.

"Department of Telecom  (DoT)revised and issued demand cum show cause notices to six telecom service providers for a total amount of Rs 30,776 crore (Rs 29,474 crore as licence fee and Rs 1,302 crore as spectrum usage charges), taking into account report No.4 of 2016 of C&AG licence agreement and status of litigation for the four financial years..." Telecom Minister Manoj Sinha said in a written reply to Lok Sabha, reported by PTI.

The four financial years are 2006-07, 2007-08, 2008-09, and 2009-10.

"The definition of gross revenue and adjusted gross revenue was challenged by the private telecom service providers and now the matter is in Supreme Court of India. The Department is defending the case with all out efforts," Sinha said.

As per last year's report of the Comptroller and Auditor General of India, six major telecom companies "paid less licencing fee, spectrum usage charges including interest and penalty amounting to Rs 12,488.93 crore for the four financial years", he said.

Telecom Department ordered the special audit for financial years 2006-07 and 2007-08 for five major telecom companies. "On the basis of reports of the special audit; the demands of Rs 1,846.51 crore were issued during the year 2012. The demands are under litigation in various judicial fora," said the reply.

It further stated that in 2016, the Telecom Department ordered for special audit of six major telecom companies for three financial years - 2008-09, 2009-10 and 2010-11.