New Delhi: State-owned MTNL has failed to deposit interest on sovereign guarantee bonds in the escrow account due on March 24 this year, the company said in a regulatory filing on Friday.
As per the structured payment mechanism of Tri-Partite Agreement (TPA) signed among MTNL, the Department of Telecommunications (DoT), Beacon Trusteeship Limited, the telecom company has to fund the semi-annual interest into the escrow account maintained in Bank of India with an adequate amount 10 days before the due date, which in this case is March 24, 2026.
“In view of the above provisions of TPA, it is informed that due to insufficient funds, MTNL could not fund the escrow account maintained in Bank of India with an adequate amount,” the public sector telecom company said.
MTNL said that all bonds issued by MTNL are Sovereign Guaranteed Bonds by the centre.