Firm Matters

Khaitan & Co advised and represented Pioneer Elabs Ltd (“Pioneer”) before the Telecom Dispute Settlement Appellate Tribunal (“TDSAT”) challenging a Demand Notice dated 30 September 2025 issued by the Department of Telecommunication (“DOT”). Vide the Demand Notice, DOT called upon Pioneer to pay INR 13,62,34,165 as License Fees for FY 2023-2024 and threatening coercive action against Pioneer in case of failure to pay the above amount. 

During the hearing, it was submitted by us that the Demand Notice had been issued by the DOT not only contrary to the terms of the License Agreement but also the well-settled position of law laid down by the TDSAT that the revenue generated from pure internet services cannot be included within the scope and purview of Aggregate Gross Revenue that forms basis of the calculation of the License Fee. 

After considering the above submissions, the TDSAT was pleased to pass an interim order staying the operation and implementation of the Demand Notice dated 30 September 2025 issued by DOT. The TDSAT further directed the DOT not to initiate any further coercive steps against Pioneer.