Tata Teleservices Asked to Furnish Sale Details With Airtel for Obtaining DoT Clearance

Telecommunications Department (DoT) has asked Tata Teleservices to hand over the details of its sale to the government so that the department can judge who will be responsible for taking over the liabilities of the company once the Bharti Airtel & Tata Teleservices (TTSL) deal is complete. The DoT official who conveyed the news said that Tata Teleservices owes a chunk of money to the government for various purposes. The deal which is going to happen between Sunil Bharti Mittal led-company, Bharti Airtel and Tata Teleservices is going to be a cash-free and debt-free deal. It is necessary that Tata clear all its dues to the government before it proceeds with the merger. As the details of the deal have highlighted, Airtel will be taking over responsibility for paying off Rs 1,500-2,000 crore for spectrum that Tata Tele bought in auctions.

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The DoT official said about the matter to ET as “We have asked them (Tata Tele) to share with us which parts of the unified licence they will keep and which parts will get transferred to Airtel… That will determine the entity that will bear the liabilities and according to that, we will raise the dues.”

In another deal, Tata wants to segregate its business and also intends to sell it to Tata Communications, a firm in which government holds 26% stake. The company will be knocking on the department’s doors soon for the clearance of this deal too. Until then, the DoT wants to extract the debt which Tata Tele owes to the governments summing up to Rs 6,000 crore.