Tata Communications has ongoing appeals concerning its ILD (International Long Distance), NLD, and ISP licences, which are currently pending before the Supreme Court and the telecom tribunal, TDSAT.
On July 17, 2025, the Department of Telecom (DoT) issued show-cause-cum-demand notices to Tata Communications for ₹7,827.55 crore, covering FY 2005-06 to FY 2023-24. The sum includes ₹276.68 crore from disallowed deductions under its ISP licence (FY 2010-11) and NLD licence (FY 2006-07, FY 2009-10).
The demands stem from the adjusted gross revenue (AGR) definition upheld by the Supreme Court in 2019, which broadened AGR to include non-telecom revenues.
As of June 30, 2025, Tata Communications has received show-cause-cum-demand notices from the Department of Telecommunications totaling ₹7,827.55 crore for FY 2005-06 to FY 2023-24, with amounts revised over time, Managing Director AS Lakshminarayan said.
Tata Communications holds ILD, NLD, and ISP licences under the pre-2000 regime and argues these differ from UASL licences addressed in the ruling. The company asserts the dues are not applicable and is contesting them through pending appeals before TDSAT and the Supreme Court, supported by independent legal opinions.
Following the 2019 verdict, DoT initially sought around ₹6,633 crore. In March 2021, Tata paid ₹379.5 crore under protest to limit penalties, while continuing its legal challenge. Subsequent notices raised the total to the current figure.
The case’s outcome will hinge on judicial interpretation of Tata’s legacy licences, with potential precedents like the NetMagic vs DoT matter influencing the verdict. A ruling against Tata could significantly impact its financials and investor sentiment.
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