The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has asked the Ministry of Information & Broadcasting (MIB) to take a fresh look on the request of Noida Software Technology Park Ltd’s (NSTPL) to assign its headend-in-the-sky (HITS) licence as security for bank loan.
NSTPL, which operates under JAINHITS brand, had sought a bank loan of Rs 15 crore (Rs 150 million) for its working capital requirement. The bank agreed to advance the loan, subject to assignment of its HITS licence as collateral security.
MIB had denied permission to NSTPL for using HITS licence as security, subject to certain conditions.
NSTPL counsel Vivek Chib argued that both HITS and DTH operators are distributors and carriers of TV channels to the subscribers. If DTH operators have been allowed to deposit their licence as security, then why HITS operators have been denied.
Chib cited many clauses before the tribunal, where MIB remained biased with HITS operators and favoured DTH operators. After considering all these arguments, TDSAT said to MIB to relook at NSTPL’s request.