In Brief
The Union of India challenged a TDSAT order directing refund of ₹104.34 crores excess amount encashed from bank guarantees furnished by Reliance Communication and Reliance Telecom Limited for deferred spectrum charges. The Union had encashed ₹908.91 crores in bank guarantees while the actual liability was only ₹774.25 crores. Although the respondents later defaulted on 2019 payments, they had furnished fresh guarantees for subsequent instalments. The Supreme Court dismissed the Union's appeal, holding that retention of the excess amount constituted unjust enrichment and that subsequent defaults could not justify withholding the refund of previously over-encashed amounts.
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