'BSNL's demand of Rs 9.89 cr from RCOM is loss estimate'

NEW DELHI: The Supreme Court on Monday ruled that BSNL’s demand of over Rs 9.89 crore from Anil Ambani’s Reliance Communication (RCOM) for illegal routing of calls was not penal but estimation of the loss suffered by the PSU. The apex court set aside TDSAT order and asked the tribunal to decide the matter accordingly. The tribunal had held that such demand of BSNL was penal in nature. It was challenged by the PSU in the apex court.

Allowing the appeal, a three judge bech headed by Chief Justice Kapadia said: “Under the Interconnect Agreement, the UASL is obliged to maintain the integrity of its exchange/POI. It is important to note that each service provider including BSNL, is a market player/ stakeholder. Each UASL is entitled to a level playing field.

The nature of the call, be it local or national or international, as indicated by corresponding CLI (Calling Line Identification ), is the basis for the levy of IUC (including ADC). If by wrong routing of calls or by masking, the cost of providing services is reduced , the concerned operator gets an undue advantage not only in the Indian market over other competing operators but also in the international market” .

According to the apex court, the illegal routung of calls, results in payment of IUC at a lower rate. It leads to reduced cost for the defaulting UASL which provides not only increase in its profit but also gives it an advantage in international market vis-a-vis other competitors because the defaulting UASL can easily price its product in the international market at a lower rate and in that sense loss is caused to BSNL.

Responding to the SC ruling , the RCOM spokesperson said: "... The Hon’ble Supreme Court has held that there is no penalty under the interconnect agreement, and only a pre-estimate of reasonable compensation to BSNL. The Supreme Court has remanded the matter to TDSAT to decide the matter de novo."