Bharti Hexacom Wins Favorable Bombay High Court Judgment on OTSC Demand

Bharti Hexacom Ltd's Rs 473.7 crore liability has been set aside.
The company has received a favorable judgment from the Hon'ble Bombay High Court.

What just happened

On June 8, 2026, the Bombay High Court allowed a petition filed by Bharti Hexacom (promoted by Bharti Airtel Limited). The court has nullified a demand notice from the Department of Telecommunications for Rs 473.7 crore related to One-Time Spectrum Charges (OTSC). This pertains to the Rajasthan and North East circles.

Why this matters

This ruling resolves a significant legacy litigation dating back to a demand issued in January 2013, revised in 2018. The elimination of this Rs 473.7 crore contingent liability provides substantial regulatory clarity and strengthens the company's balance sheet. It removes a historical financial burden.

The backstory

Bharti Hexacom has been involved in litigation with the Department of Telecommunications over the OTSC demand for several years. The matter involved complex regulatory interpretations regarding spectrum charges.

What changes now

The OTSC demand is no longer applicable to Bharti Hexacom. This brings finality to a significant financial uncertainty, improving the company's risk profile and potentially freeing up resources previously earmarked for this liability.

Risks to watch

While this judgment is favorable, the company must continue to adhere to all current and future regulatory requirements for spectrum usage and charges.

Peer comparison

Other telecom operators have also faced similar spectrum charge-related litigations in the past, highlighting the regulatory complexities within the sector.

Context metrics (time-bound)

• Amount Set Aside: Rs. 473.7 crore
• Judgment Date: June 8, 2026
• Litigation Subject: One-Time Spectrum Charge (OTSC) Demand

What to track next

Investors will be watching how this resolution impacts the company's financial disclosures and overall strategy moving forward.