Lok Sabha Question No. 397 (STARRED), answered on 2016-12-14
Subject: Underreporting of Revenue by Telecom Operators
Ministry: COMMUNICATIONS
Asked by: RAJESH KUMAR DIWAKAR, KIRTI VARDHAN SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION NO.397 TO BE ANSWERED ON 14 TH   DECEMBER, 2016

## UNDERREPORTING OF REVENUE BY TELECOM OPERATORS

- *397.  SHRI RAJESH KUMAR DIWAKER: SHRI KIRTI VARDHAN SINGH:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Government  has  issued  demand-cum-show-cause  notices  to private telecom companies regarding under-reporting of revenue in the recent past;
- (b) if so, the details thereof along with the details of revenue to be recovered from each of them, company-wise;
- (c) whether some telecom companies have moved court in this regard; and
- (d) if so, the details thereof and the present status of the cases?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) to (  d) A Statement is laid on the Table of the House.

Contd/elipsis2/-

STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS (a)  TO  (d)  OF  LOK    SABHA  STARRED  QUESTION  NO.397    FOR  14 TH DECEMBER, 2016 REGARDING 'UNDERREPORTING OF REVENUE BY TELECOM OPERATORS'.

(a) Yes Madam, Department has issued demand-cum-show cause notices to six private  telecom companies on the basis of C & AG Report No. 4 of 2016, for four financial  years  i.e.  2006-07  to  2009-10  for  a  total  amount  of  Rs.  29474  crores  on account of License Fee (LF).

(b) Details  of  demand  cum  show  cause  notices  issued  to  private  telecom companies for LF based on C &AG Report No 4 of 2016 are furnished below;

(In Rs. Crores)

| Operator            | LF (O/S)   |   Interest |   Penalty |   Interest on Penalty |   Total |
|---------------------|------------|------------|-----------|-----------------------|---------|
| Bharti Airtel Group | 1768       |       3903 |       853 |                  1638 |    8162 |
| Aircel Group        | 108        |        269 |        45 |                    68 |     490 |
| Tata Teleservices   | 1213       |       2683 |       632 |                  1190 |    5718 |
| Idea Cellular       | 629        |       1260 |       303 |                   516 |    2708 |
| Reliance Group      | 1668       |       3597 |       841 |                  1596 |    7701 |
| Vodafone Group      | 1104       |       2039 |       504 |                  1049 |    4695 |
| Total               | 6490**     |      13751 |      3178 |                  6055 |   29474 |

**This  figure  is  the  revised  LF  demand  which  includes  Rs  3794  Crore  of  LF demand  already  raised  by  DoT  on  account  of  Regular  and  Special  Audit Demands.

The  LF  is  calculated  as  a  percentage  of  Adjusted  Gross  Revenue.  The definition  of  Adjusted  Gross  Revenue  is  under  litigation  since  2003.    The  matter  is presently  pending  in  the  Hon'ble  Supreme  Court.  As  per  orders  of  the  Hon'ble Supreme Court, the Department has been barred from taking any coercive step to recover the outstanding dues.

(c) & (d) Yes, One of the TSPs i.e. M/s RCL (Reliance Communications Limited) has  challenged  these  demands  in  Telecom  Disputes  Settlement  and  Appellate Tribunal (TDSAT) vide petition no. 71 of 2016. Matter is pending in TDSAT.

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