New Delhi: The government plans to withdraw lawsuits against the telecommunications companies, involving disputes of approximately ??40,000 crore, according to a source.
With this in mind, the Department of Telecommunications has already filed an affidavit to the Supreme Court in a case against Reliance Communications promoted by Anil Ambani in order to make an informed decision on whether or not to pursue this appeal, the source said.
The DoT said the telecom industry is going through a financial crisis due to various circumstances and telecom service providers are suffering losses.
He observed the representation of the Association of Indian Banks that unfavorable developments in the telecommunications sector can lead to failures, disappearance of competition, duopoly, unsustainable operations and serious losses for the banking system which is very exposed to this sector.
“… the central government wishes to review and / or reconsider its decision to continue with this appeal process. It is suggested that given the nature of the issue at hand, this decision should be taken after different levels which may require a reasonable time, â€states the affidavit dated October 4.
According to the government, the amount involved in the business imposes financial liability up to ??About 40,000 crore on various telecom operators.
The DoT asked the Supreme Court for three weeks to allow “the central government to make an informed decision whether or not to pursue this appeal” and requested that the case be adjourned for a period of time. four weeks.
The government announced on September 15 relief for telecom operators by giving them more time to pay contributions and interest on penalties in the form of shares.
The DoT said the decision was taken to promote the public interest, protect government revenues and more specifically encourage competition among telecom operators by preventing a situation where the viability of some of the service providers becomes unsustainable, resulting in monopoly situations and other negative impacts on the economy.
Cyril Amarchand Mangaldas’ partner Sameer Chugh said the DoT asking the Supreme Court for a delay to review and reconsider its decision to appeal the TDSAT order in the RCom case appears to be yet another step to rectify the anomalies. past.
“Clearly, signs of recovery and future growth in the telecommunications sector will also boost the overall economy. technologies like 5G. The telecommunications industry, which has been an extremely contentious industry, will see a decline in litigation paving the way for greater focus on business, â€said Chugh.
This story was posted from an agency feed with no text editing. Only the title has been changed.
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