India, Dec. 4 -- The Bombay High Court on Monday pulled up the state government for defending an "untenable" litigation against Tata Communications Limited (TCL) and imposed a cost of Rs.25 lakh for exhausting their time and money over decades. The court also struck down the state's demand for Rs.26 crore from TCL as unearned income for a plot in Bandra, which the government had allotted for staff quarters of Videsh Sanchar Nigam Ltd (VSNL).

The plot had been allotted by the state government to Overseas Communication Services (OCS) - then under the ministry of telecommunications - for construction of staff quarters in 1991. Earlier, in 1986, the central government had transferred the management, control and all assets of OCS to Videsh Sa...