New Delhi: Ignoring its member Reliance Jio’s contentions, telecom industry association Cellular Operators Association of India (COAI) has shot off an ‘addendum’ to its earlier demands and has now sought a complete waiver of statutory dues that its other members such as ‘Bharti Airtel’ and ‘Vodafone-Idea’ owe the government following the Supreme Court ruling.
COAI director-general Rajan S Mathews shot of a second letter October 31 in as many as days to Telecom Minister Ravi Shankar Prasad seeking waiver of the ‘entire’ amount of Rs 1.42 lakh crore due to its principal members ‘Bharti Airtel’ and ‘Vodafone Idea Ltd’ and other telecom operators ‘given the poor financial state of the sector’.
The Supreme Court had earlier October 24 upheld the government’s position on including revenue from non-telecommunication businesses in calculating the annual gross revenues of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer. It directed the telcos to pay the principal due together with interest and penalties within three months.
“However, if such a step (complete waiver of all dues) is not possible, we request that the government waive off the interest, penalty and interest on penalty. Since the disputed payments go back to accumulation over the past 14 years, we request that the principal repayment of past dues be done over a period of 10 years, with a two-year moratorium,” wrote Rajan S Mathews in the letter.
The demand made by COAI is exactly the same as the one made in an unsigned paper submitted to the Telecom Ministry on the day Bharti ‘Airtel’ chief Sunil Bharti Mittal and his brother Rajan Bharati Mittal met Ravi Shankar Prasad and Telecom Secretary Anshu Prakash.
Billionaire Mukesh Ambani’s ‘Jio’, which is also a member of COAI, has been contesting claims of the inability of telcos to pay the statutory dues, for which they ideally should have provisioned in accounts in view of a legal dispute.
‘Jio’ has said COAI shot off the first representation to the government October 30 without waiting for its comments. It feels COAI for the benefit of some of its members is using a ‘threatening and blackmailing’ tone in its communication to the government on the non-existent crisis in the sector following the Supreme Court ruling on payment of statutory dues.
‘Jio’ has separately written to Prasad opposing any bailout to telecom companies at taxpayers’ expenses and asserted the COAI should not be considered an association representing the industry.
It has accused COAI of writing to government ‘under the influence of two of its members in furtherance of their vested interests’ and accused the association of acting as a ‘mouthpiece of two service providers’ and harbouring a negative bias towards ‘Jio’.
PTI
