Shares of state-run companies such as Power Grid Corporation of India, GAIL India, OIL India among others rallied Thursday after the Supreme Court asked the Department of Telecommunications (DoT) to reconsider its demand of telecom license dues from these non-telecom companies.
State-run companies such as Power Grid Corporation of India, GAIL India, OIL India got a breather after the Supreme Court asked the Department of Telecommunications (DoT) to reconsider its demand of telecom license dues from 'non-telecom' companies PSUs.
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Terming it an "unnecessary demand", Justice Arun Mishra also said that the license fees demand placed by the Dot against PSUs is impermissible.
During the hearing, the SC came down hard of the Department of Telecom for raising the demand against PSUs. "What non-sense is being down in the name of our judgement? There is a vast difference in the licence of PSUs and licence fo telcos. Demand against PSUs must be withdrawn," the bench said, adding that the demand was being raised with an "ulterior motive."
The DoT has demanded Rs 48,489 crore from OIL India; PowerGrid Corporation has received Rs 22,062.65 crore notice while GAIL India has received demand worth Rs 1,72,655.73 crore for telecom license from the DoT.
On the part of the government, the Solicitor-General replied that the DoT's reading of previous SC observations was that the government was required to raise demands.
"Please empathise with the officers. They feared being punished if they had not raised demands," the SG said. adding that the government would file affidavits explaining its position.
The SC did not decide on the issue of telcos having to pay AGR but it asked the companies to provide an undertaking and a plan on how they will pay their dues.
The next hearing on the case will be on June 18.
First Published: IST