NEW DELHI, July 17: The Department of Telecommunications has received a shot in the arm after a Chennai court gave a judgement in its favour, earlier this week, for encashing Rs 20 crore bank guarantee of the Hinduja group led HHS Communication. This is first case regarding the encashment of bank guarantees that the DoT has won. At least three other companies including the Essar group, RPG group and Himachal Futuristic Communication Ltd (HFCL) have taken the DoT to court on the issue of encashment of bank guarantees by the DoT.All companies who had won bids and obtained Letters of Intent from the government for setting up private operated telecommunication services, basic and cellular, were required to furnish bank guarantees to the DoT which could be encashed if they defaulted on any of the tender conditions especially payment of licence fees. Senior officials in the DoT believe that winning this case was a morale booster and would greatly help their other pending cases. So far they felt that their stand was vindicated by banks which preferred to shield their erring clients as they brought them major business.
