GTPL Broadband Faces ₹357 Cr Licence Fee Demand from DoT
Overview
GTPL Broadband, a unit of GTPL Hathway, is contesting a ₹357 crore licence fee demand from India's Department of Telecommunications for FY25. The company disputes the inclusion of pure internet revenue in adjusted gross revenue calculations, citing legal precedents and ongoing litigation, and has disclosed the amount as a contingent liability.
DoT Issues Licence Fee Notice to GTPL Broadband
The Department of Telecommunications (DoT) has served GTPL Broadband, a subsidiary of GTPL Hathway, with a demand-cum-show cause notice regarding licence fees for the financial year 2024-25. The notice covers an assessed amount which the company has disclosed as a contingent liability of ₹357 crore as of December 31, 2025.
GTPL Broadband is currently preparing its response to the DoT. The company maintains a strong belief in its legal position, supported by independent expert opinions, and has therefore not made any provision for this demand, including potential interest and penalties, in its financial statements. This stance is based on prior tribunal rulings.
Background of the Dispute
The core of the dispute lies in the calculation of the licence fee, mandated at 8% of adjusted gross revenue (AGR) under the Unified Licence granted in 2016. Pre-2013 ISP licences excluded revenue from pure internet services from AGR. However, the Unified Licence framework removed this exclusion.
This change was challenged by the Internet Service Providers Association of India. In October 2019, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruled the clause discriminatory and unfair, quashing similar demands based on pure internet service revenue. The DoT appealed this ruling to the Supreme Court, where it remains pending.
Ongoing Legal Battle
GTPL Broadband itself had a similar petition allowed by TDSAT, and this particular order has not been challenged by the DoT in the Supreme Court. Separately, GTPL KCBPL Broadband, another group subsidiary, faces similar demands estimated at ₹27 crore and ₹22 crore as contingent liabilities. The ultimate financial impact on GTPL Broadband and its subsidiaries hinges on the resolution of these ongoing legal proceedings.
