Banglalink's share transfer stuck on payment of Tk870cr due

The share transfer in Banglalink's corporate structure is stuck for long on the condition, set by the Bangladesh Telecommunication Regulatory Commission (BTRC), of payment of Tk 870 crore dues.

This complication is not only affecting the transfer of shares, but also the operator's corporate sector business operations.

According to BTRC, approval of the regulatory body is mandatory for share transfer in telecom sector.

However, in the current situation, the main reason behind the pending share transfer of Banglalink is the outstanding Tk 870 crore of the operator.

BTRC decided in April this year that the share transfer will not be approved before the payment of this due.

BTRC has legal and administrative framework behind this condition. The Department of Telecommunications has directed that the government dues of the telecom licensees should be verified before share exchange.

Abiding by this directive, BTRC verified the dues to Banglalink and found that the operator has a large amount due.

Taimur Rahman, Chief Corporate and Regulatory Affairs Officer of Banglalink, claimed that various problems are being created in the operator's corporate structure due to the stalled share transfer.

“Although there is no financial transaction involved in this share transfer and there is no change in the management of the company, this complication is causing delays in the company's operations,” he said.

Taimur Rahman also said that they have paid the entire principal dues claimed through the ISA audit without any legal action, and are negotiating with BTRC to pay the remaining dues.

Meanwhile, the company is paying the spectrum charges in installments, which is seen as a positive step in the process.

BTRC investigated the matter on the spot and found that the new shareholders participating in the share transfer are subsidiary companies of Banglalink's parent company, Vion.

It means that the process of their share transfer is being done according to the rules.

However, BTRC has withheld the share transfer as per the existing rules and for recovery of government dues.

Discussions are going on between Banglalink and BTRC regarding the transfer.

In October this year, BTRC decided to prepare a roadmap on how Banglalink will pay its dues.

Ashish Kumar Kundu, director general of BTRC's Legal and Licensing Department told Views Bangladesh, “The amount of due money the BTRC is supposed to get for 3G, spectrum and delay fees stands at Tk 870 crore. Several letters have been sent to Banglalink for payment of dues. But as they have not pay the dues, the amount of late fee is also increasing.”

He said that Banglalink is in discussions with BTRC about their share transfer approval process and the roadmap for payment of arrears.

Ashish Kumar Kundu said according to the decision of the commission, they cannot approve the transfer of shares of Banglalink before the payment of the dues.