B Mirror Report: government’s plan to resolve its multi-billion-dollar revenue dispute with the country’s leading telecom operator, Grameenphone, through out-of-court settlement or arbitration has temporarily stalled. Although the interim government initially showed positive interest in the idea, it is now reluctant to take any major final decision ahead of the national election. The process has effectivelycome to a standstill, mainly due to a lack of consensus among the legal experts of the Bangladesh Telecommunication Regulatory Commission (BTRC).
At the heart of the long-running dispute is an audit report issued in 2019, based on which BTRC claimed around Tk 12,580 crore in unpaid revenue from Grameenphone for the period between 1997 and 2014. A significant portion of this amount also involves the National Board of Revenue (NBR). Grameenphone challenged the claim in a Dhaka court the same year, and the case has remained pending for the past six years. Although the company deposited Tk 2,000 crore in 2020 following an Appellate Division order, no resolution has yet been reached regarding the remaining dues.
In July last year, Grameenphone applied to settle the complex issue through a specialized arbitration tribunal outside the court system. The company argued that lengthy civil court procedures make it difficult to obtain timely verdicts, which in turn hurt the investment climate. It believes arbitration by subject-matter experts could offer a practical and timely solution beneficial to all parties. However, differing legal opinions within BTRC have further complicated the matter.
One of BTRC’s legal advisory firms, Justiciars, believes the dispute can be resolved on a limited scale through mutual consent under the Arbitration Act 2001. In contrast, Capital Law Chamber and the Commission’s panel lawyers strongly oppose the idea. They argue that since the claim arises under telecommunications law as a statutory liability, it is not a private commercial dispute suitable for arbitration. They have also warned that arbitration could disrupt ongoing judicial proceedings and set a negative precedent for future regulatory enforcement.
BTRC Chairman Major General Md Emdad Ul Bari and the Chief Adviser’s Special Assistant, Faiz Ahmed Taiyab, said the government is closely reviewing the economic and legal implications of the matter. While the authorities initially welcomed Grameenphone’s proposal as a potential “win-win solution,” they are now exercising greater caution due to legal risks. In particular, fresh legal opinions are being sought on whether it is appropriate to take a public revenue issue of such importance outside the court system.
Alongside Grameenphone, Robi Axiata is facing a similar situation. In 2019, the operator was also hit with an audit claim of Tk 867.24 crore. Robi has likewise been pursuing alternative dispute resolution outside the courts, though legal complications persist there as well. A mediation hearing in the Grameenphone case scheduled for January 11 was recently postponed to April 26, while Robi’s hearing has also been deferred to April. As a result, the billion-dollar audit disputes involving the country’s two leading telecom operators remain mired in uncertainty amid ongoing legal challenges and pending government decisions.
