Welcome Guest Login | Register | Site Map | | Make TelecomTiger my homepage     
Telecom News
Enterprise |  Policy & Regulation |  Mobiles & Tabs |  Corporate |  VAS |  People Movement  |  Technology  |  LTE
Policy & Regulation
DoT blacklists bank guarantees issued by Standard Chartered Bank
TT Correspondent |  |  20 Aug 2018

The telecom department has blacklisted bank guarantees issued by Standard Chartered after the bank failed to invoke one that was issued for Aircel Group.

In a strongly worded office memorandum sent to all telecom operators and concerned officers, the DoT (Department of Telecom) has directed entities that they should not accept bank guarantee (BG) from Standard Chartered Bank, including renewals.

"Standard Chartered Bank has failed to invoke a BG issued by them on behalf of Aircel Group of companies. This action by Standard Chartered Bank is a serious breach of trust and contract with government of India. In view of this you are directed not to accept any new BG from Standard Chartered Bank, including renewals," the note said.

When contacted Standard Chartered Bank spokesperson said, "Pursuant to an order passed by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), we were unable to make payments with respect to certain bank guarantees invoked by the DoT. As per the said order, the invocations are not to be given effect to and the bank guarantees are not to be encashed".

The amount involved in BGs could not be ascertained.

"Hence, our actions were driven by the law of the land and we had no discretion whatsoever in how we dealt with the said invocations," the bank's spokesperson said.

No immediate comments were received from Aircel in this regard.

Standard Chartered is second bank whose BG have been barred by DoT. The department has earlier barred BGs issued by Axis Bank for Aircel.

Axis Bank had then said that the BGs was issued on behalf of Airtel for Aircel and a case related to the issue was pending before telecom tribunal.

(Reported PTI)

    
Other Stories in this Section
 mail this article    print this article    Show and Post comment
20 Aug 2018(IST)  
Whitepaper
Maintain Business Continuity with Cisco ASR 9000 nV Technology
It is a virtual chassis solution where a pair of ASR 9000 routers acts as a single device by maintaining a single contr...read more
Simplify Your Network with Cisco ASR 9000 nV Technology
With the new Cisco Network Virtualization (nV) technology in the Cisco ASR 9000 Series Aggregation Services Routers, se...read more
Cisco Small Cell Solution: Reduce Costs, Improve Coverage
It is designed to address the challenge of mobile service coverage and to expand network capacity...read more
Other Stories of the Day