TDSAT reduces Aircel's financial bank guarantee by 50 per cent

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3 Nov 2010
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In an interim order, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed Aircel to renew its bank guarantee with 50 per cent of the original amount paid by it at the time of spectrum allocation for UP East and UP West circles.

Aircel had sought TDSAT’s directions to DoT to revise guarantees submitted by it in all its circles. Both have a dispute over revision of the guarantees.

"Keeping in view the fact that the petitioner (Aircel) has been in an ongoing concern, interest of the justice would be sub served if at this stage the petitioner is directed to furnish a bank guarantee of 50 per cent of the original bank guarantee in respect of aforementioned circle," TDSAT said.

A TDSAT bench, headed by its Chairman Justice S B Sinha, also directed the DoT not to take any coercive steps against Aircel on this issue.

"With aforesaid observations and directions, DoT is hereby restrained to take any coercive step to direct Aircel to renew the bank guarantee subject to the conditions," TDSAT said.

As per TDSAT order, Aircel has to furnish the guarantees within a week. Aircel had paid a financial bank guarantee of Rs 25 crore each for the 20 circles for which it had got licence.

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