The delay stems from Trai’s dispute with state-owned NBCC (India) Ltd, under the ministry, which built the 1.16-lakh-square-feet office at a cost of about ₹450 crore. The developer has demanded a ₹57 lakh interest for alleged delayed payment by Trai, leading to an impasse that has held back the mandatory clearance required for formal registration.
“When the office premises were handed over to Trai in May 2024, the office was in an incomplete state. In addition, a few upper floors in the Tower F building were still under construction, which led to water seepage into various areas of the Trai premises, damaging the interior and furniture,” said the first official cited above, adding that this led to the regulator holding back a portion of the payment— ₹30 lakh—against the damage and incomplete work. The amount was released in December 2024 on completion of the work.
However, NBCC levied an interest of ₹56.8 lakh that the regulator has not yet paid. “These are non-legitimate charges. Trai had sent several communications to NBCC, requesting waiver of the interest charges under the circumstances. But no formal response has been received till date,” said a second official, adding that the housing ministry has also been approached.
Registration of the building is critical for Trai, as it cannot otherwise legally establish ownership or access the project’s remaining funds that are required for the payment of stamp duty and other statutory charges. And the communications ministry, on its part, has been pressing Trai to return the unspent funds, making formal registration of the building essential, a third official said.
Trai relies on grants from the department of telecommunications (DoT), under the communications ministry, with its general fund set at ₹130 crore for FY25 and ₹131 crore for FY26, as per the budget for FY26. For funding the new building project, Trai received an extra grant from DoT for a few years after the project entered the construction phase.
Set up in 1997, Trai had been functioning from rented premises till May 2024. In November 2020, the government, through the DoT, approved the acquisition of office space at the NBCC Commercial Complex, currently being developed as the World Trade Centre (WTC) at Nauroji Nagar in New Delhi. Trai operates out of fourth to seventh floors in Tower-F of the complex.
In November 2022, the regulator signed an agreement with NBCC Services Ltd, a wholly-owned subsidiary of NBCC (India), to undertake the planning, design, and execution of interior fit-out, renovation, and furnishing works for its new office space.
Responding to Mint‘s emailed queries, an NBCC spokesperson said: “The sale of commercial space at WTC, Nauroji Nagar was conducted through open e-auction… The application form clearly stipulated that, in the event of any delay in payment, interest at the rate of SBI Highest MCLR + 2% would be charged on the amount due, calculated from the due date of payment until the date the payment was actually made.” The developer said Trai had delayed payment of an installment and therefore, an interest had been levied.
“The NOC can be issued after receipt of complete payment,” NBCC added.
Speaking on the condition of anonymity, a government official said that the housing ministry was looking into the matter. One of the concerns is that if the interest is waived for a single entity, others could also start demanding a similar treatment that will be difficult to accommodate, the official added.
Queries emailed to Trai and the housing ministry on Monday evening did not elicit any response until press time.
Seeking more powers
Besides the property registration issues, the regulator is also in a bind over its limited powers. Weak enforcement authority over its regulations has hampered Trai’s ability to effectively address service quality issues and rein in the growing menace of spam calls. According to the Trai Act 1997, Trai’s powers are primarily regulatory, advisory and enforcement-focused through directions. Its power to enforce orders is limited and it relies on the DoT for licence actions.
Trai has recently sought amendments to the law, seeking greater enforcement powers to regulate operators and recover penalties. It has sent a proposal to the DoT calling for more power to function with ease and independence, Mint reported on 8 January, citing officials in the know.
It has also argued for a change in its funding model to secure necessary flexibility and independence, similar to other regulators such as the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (Irdai), according to its FY25 annual report released earlier this month.
If a minor portion of the licence fees being recovered from the regulated entities is allowed to be utilized to meet Trai’s operational expenses, in the form of administrative charges, the need for governmental support in the form of grant-in-aid would totally cease, Trai said in the report, adding that such an arrangement would give it the necessary flexibility to function effectively as an independent regulator.
