Bombay High Court on Monday struck down the government's one-time spectrum charges imposed on Bharti Airtel Ltd. and Vodafone Idea Ltd., ruling that all the actions taken on basis of disputed demands have also been annulled, as rpeorted by ET Now.Both the companies have together received a relief of approximately Rs 20,000 crore.The court directed that the bank guarantees submitted by companies must be returned. Further, all demand notices and orders related to OTSC have been set aside.It clarified that the matter is still pending before the Supreme Court.Vodafone Idea has received a relief of Rs 11,000 crore, while Bharti Airtel has received a relief of Rs 9,000 crore, according to ET Now.The government levied OTSC in 2012 with several slabs announced as per spectrum holdings.As per a PIB release, the government exempt firms with spectrum holding upto 4.4 MHz (GSM) of any one-time charge.For all spectrum holdings beyond 4.4 MHz (GSM), the Centre announced that one time charge will be levied prospectively upon the existing operators at 2012 auction determined price.Further, for spectrum held above 6.2(GSM), a one-time charge was levied from July 2008 onwards."There will be two prices. The price, pro-rated for the period July 2008 up to the date of applicability of auction determined price, would be in the 2001 entry fee divided by 6.2, duly indexed using State Bank of India Prime Lending Rate (SBI PLR). The auction determined price will be levied for spectrum beyond 6.2 (GSM) with effect from the date of commencement of the first quarter following the date of the Cabinet decision," the release said.Licensees may be given the option to surrender the spectrum beyond 4.4 MHz (GSM) if they did not wish to pay this charge, it stated.
Bombay HC sets aside govt order on one-time spectrum charges on Airtel, Vodafone Idea
The Bombay High Court has cancelled the one-time spectrum charges for Bharti Airtel and Vodafone Idea. This decision brings relief of approximately Rs 20,000 crore to both companies. Bank guarantees submitted by the firms will be returned. All demand notices and orders concerning these charges have been set aside. The Supreme Court is still considering the matter.
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