BSNL suffers loss

Special Correspondent

Possibility of recovering money is remote as the company is in the process of liquidation: CAG

Bank guarantees not submitted by private firm for 10 of 17 PoIs52 post-dated cheques worth Rs. 85 crores bouncedBSNL failed to disconnect PoIs in time

NEW DELHI: The latest report of the Comptroller and Auditor General (CAG) has exposed a deal that resulted in Bharat Sanchar Nigam Limited (BSNL) suffering losses of Rs. 220 crores. The possibility of recovering the money is remote as the private company is in the process of liquidation.

The BSNL-Data Access India deal has been the talk in telecom circles for long but CAG has brought out the extent of negligence that caused BSNL to suffer losses of over Rs. 200 crores.

The public sector company failed to persuade Data Access India to cover all aspects with firm bank guarantees (BGs), allowed it to issue post-dated cheques that bounced and even when the failure of Data Access India to make payments was established, BSNL did not promptly disconnect the points of interconnect (PoIs).

The saga began in 2002 when BSNL entered into an agreement with Data Access, an international long distance operator, for providing interconnect facilities.

BSNL provided 17 points of interconnect (PoIs) to Data Access India and the bills for each PoI were to be raised on a monthly basis and paid within 15 days. BSNL could encash the bank guarantee and disconnect the PoI if the payment was not made.