Mahanagar Telephone Nigam Limited has disclosed significant defaults in bank payments totaling ₹9,115.65 crore as of January 31, 2026. The state-owned telecommunications company informed BSE and NSE about these defaults under SEBI regulations, marking a continuation of its ongoing financial difficulties that have persisted since mid-2024.

Bank-wise Default Details

The company has defaulted on payments to seven major public sector banks, with defaults occurring at different times between August 2024 and February 2025. Union Bank of India represents the largest exposure, followed by Bank of India and Indian Overseas Bank.

Financial Indebtedness Structure

MTNL's total financial obligations extend beyond bank borrowings, encompassing multiple debt categories that highlight the company's comprehensive financial challenges.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI LODR Regulations, 2015, and SEBI Circular dated November 21, 2019. This represents the latest in a series of similar disclosures, with previous intimations dating back to July 2024, indicating the persistent nature of the company's payment difficulties.

The company has been regularly updating stock exchanges about these defaults, with communications sent monthly since July 2024. The most recent disclosure covers the period ending January 31, 2026, and was filed on February 11, 2026, by Company Secretary Ratan Mani Sumit.

Mahanagar Telephone Nigam Limited (MTNL) has disclosed receiving a financial penalty of Rs 6,00,000 from the Telecom Regulatory Authority of India (TRAI) for violating Quality of Service regulations. The penalty was imposed through TRAI's order dated February 04, 2026, which MTNL received on February 06, 2026.

Violation Details

The penalty stems from MTNL's failure to comply with the Standards of Quality of Service of Access (Wireline and Wireless) and Broadband (Wireline and Wireless) Service Regulations, 2024 for Access Service (Wireless) during July 2025. Specifically, MTNL failed to publish service-wise geospatial coverage maps on its website for geographical areas where wireless voice or wireless broadband services are available for consumer subscription.

Performance Monitoring Report Discrepancies

TRAI's analysis revealed significant discrepancies in MTNL's Performance Monitoring Report (PMR) for July 2025. While MTNL reported 100% compliance for the parameter "Availability of service wise geospatial coverage map on service provider's website for percentage of working cells," TRAI found that the required maps were not properly published on the company's website.

Service Area-wise Penalty Breakdown

The total penalty of Rs 6,00,000 is distributed equally between MTNL's two service areas:

MTNL's Response and TRAI's Assessment

MTNL provided explanations for the violations, citing server failures affecting 2G map availability and providing website links for geospatial coverage maps. However, TRAI found these explanations unsatisfactory. The regulatory authority noted that the links provided by MTNL were non-functional and did not display the required information, making them inadequate for consumer use.

Regulatory Framework and Compliance Requirements

Under Regulation 15(3) of the QoS regulations, every service provider offering wireless access services must publish service-wise geospatial coverage maps on their website in the format directed by TRAI. This requirement ensures transparency for consumers regarding service availability in different geographical areas.

Financial Impact and Payment Terms

MTNL has stated that the Rs 6,00,000 penalty will not have a material impact on its financial, operational, or other activities. The company must pay the penalty within 21 days through demand draft, pay order, or electronic transfer to TRAI's designated account. Failure to pay within the stipulated timeframe will result in interest charges at 2% above the State Bank of India's one-year Marginal Cost of Lending Rate, compounded annually.

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