Vodafone Idea, the operator created by the merger of Vodafone India and Idea cellular, is searching for to reclaim an INR33 billion ($444 million) guarantee it was required to pay India’s authorities to safe approval for the deal, The Economic Times (ET) reported.
The new operator argued in a petition to the Telecom Disputes Settlement and Appellate Tribunal the demand for bank ensures was “arbitrary, discriminatory, illegal and unenforceable”, ET stated.
In July the 2 operators paid a mixture of money and bank ensures to the nation’s Department of Telecommunications (DoT) to clear the final main hurdle for the merger, which closed in August. The DoT demanded each corporations pay one-time spectrum expenses for the deal to go forward. The charges relate to the market value of non-auctioned airwaves, much less the entry charge paid when the spectrum was allotted.
Vodafone paid INR39 billion and Idea INR33 billion in ensures for spectrum-related prices to settle a long-standing dispute.
The tribunal will evaluate the case on 20 October, the newspaper stated.
Vodafone Idea beforehand twice requested the DoT to recalculate the dues, with no motion taken.
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