NEW DELHI, January 23: Anxious to capitalise on the DoT generous mood to consider proposals for out-of-court settlements with companies involved in litigations over matters of basic telecom services, Techno Telecom promoted by the Usha group, is the latest to knock at DoT's door. The company, which has the Letter of Intent (LoI) for the Bihar circle has approached the DoT expressing their "keenness" for an out-of-court settlement prior to the next hearing of the case in the Delhi High Court scheduled for January 27. The company had dragged the DoT to court following the latter's order demanding encashment of the company's bank guarantees.Techno Telecom has now offered to pay 50 per cent of their first year licence fee amounting to Rs 4.375 crore by January 31, if both parties agree to an out-of-court settlement. For the remaining part of the first year licence fees and the balance required bank guarantees, the company has sought time till June 30. It is what the company has demanded in return which has
raised eyebrows in the DoT. In return for the payment of the first instalment of Rs 4.375 crore, the company has asked the DoT to release the bid bond of the company. A bid bond of Rs 10 crore had been paid by Techno when it was issued the LoI. Under normal circumstances, the bid bond is converted into financial and performance bank guarantees which companies have to maintain with the DoT after they sign their Licence Agreement.
Highly placed sources say that if the DoT releases the bid amount, they would have no legal means of ensuring that the company adheres to its tender obligations and there may be no guarantee that they would provide the service in the end.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
