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Home -> Finance -> Full Story

HC stays MTNL disconnection notice to Reliance
Thursday, March 10 2005 14:33 Hrs (IST) - World Time -

New Delhi: In a relief to Reliance Infocomm, Delhi High Court today (Mar 10, 2005) stayed the disconnection notice of State-owned Mahanagar Telephone Nigam Ltd (MTNL) over the issue of non-payment of levy due to illegal routing of international calls.

The interim order was passed by Justice S K Aggarwal after Reliance agreed to pay an additional Rs 125 crore of the total demand of over Rs 341 core by MTNL.

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The court stayed the disconnection till May 9 while asking the private telecom operator to pay the said amount within four weeks.

Reliance has already paid about Rs 110 crore to MTNL and payment of the additional Rs 125 crore would constitute about 69 per cent of the total demand, Reliance counsel Mukul Rohatgi said.

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MTNL counsel Rajiv Nayar accepted Reliance's offer "without prejudice to rights and contentions" of the telecom PSU.

Earlier this month, MTNL had served the notice to Reliance to pay the amount by March 12 or else it (Reliance Infocomm) would be disconnected from its network.

Reliance Infocomm has been facing the payment of over Rs 550 crore from both MTNL and Bharati Sanchar Nigam Limited (BSNL). The private operator has already paid over Rs 180 crore to BSNL on this account.

PTI



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