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BANK GUARANTEE FORMAT FOR OSP LICENSE OF “WORK FROM HOME” FACILITY

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To

The President of India
Acting through The Telegraph Authority

In consideration of the President of India acting through the Director/ADG, TERM Cell (.......................) Department of Telecommunications (DoT), Government of India, ........................................................................ (office address) (hereinafter called the ‘Authority’) having issued Registration for Domestic/International OSP to M/s.  ………………….……….. having it’s registered office at  …………………………………………. (hereinafter called  ‘OSP’) to  establish, maintain and operate Domestic/International OSP Center and the OSP having agreed to the terms and condition of the agreement for “Work From Home” facility (hereinafter called ‘the facility’) for OSP’s Domestic/International OSP centre at …………………………... (give location address of the registered OSP centre) to be executed between Authority and OSP along with the terms and conditions of the ‘Other Service Provider category’, appended in the schedule thereto (hereinafter called the ‘Agreement’) which, inter-alia, provides for production of a Bank Guarantee to the extent of Rs 1,00,00,000/- (Rupees One Crore only) by way of security for due observance and performance of terms and conditions contained therein. We …………………….. (indicate the name and address and other particulars of the Bank) (hereinafter referred to as ‘Bank’) at the request of the OSP hereby irrevocably and unconditionally guarantee to the Authority  that the OSP shall abide by the terms and conditions as contained in the Agreement.

2.         We, the Bank, hereby undertake to pay to the Authority an amount not exceeding Rs. 1,00,00,000/- (Rupees One Crore only) against violation of the agreement and/or the terms and conditions of the ‘Other Service Provider Category’ by reasons of any failure of the OSP to  abide by any terms and conditions of the Agreement, including modifications thereof from time to time.

3.         We, the Bank, hereby further undertake to pay as surety such sum not exceeding Rs 1,00,00,000/-(Rupees One Crore only) without demur to the Authority immediately on demand that the amount claimed is due on account of failure of OSP to abide by the terms and conditions of the Agreement.

4.         WE, THE BANK , DO HEREBY DECLARE AND AGREE that the decision of the Authority as to whether OSP has failed to abide by any terms and conditions of the Agreement and as to the amount payable to the Authority by the Bank hereunder shall be final and binding on us.        

5.         WE, THE BANK, DO HEREBY DECLARE AND AGREE that the

a)         Guarantee herein contained shall remain in force and effect for a period of three years from the date hereof or till the validity of the Agreement whichever is later.     

b)     The Authority shall have the fullest liberty without our consent and without affecting in any manner this agreement or obligations hereunder to vary any of the  terms and conditions for Other Service Provider category or the terms and conditions of the Agreement or to extend time of performance of any obligations by the said OSP from time to time or to postpone for any time or from time to time any of the powers exercisable by the Authority against the said OSP and to forbear or to enforce any of the terms and conditions relating to the Other Service Provider category or the said terms and conditions of Registration  and we shall not be relieved from our liability by reason of any variation or extension being granted to the said OSP or forbearance act or omission on the part of the Authority or any indulgence by the Authority to the said OSP or to give such matter or thing whatsoever which under the law relating to sureties would but for this provision, have effect of so relieving us.

c)     Any claim which we have against the OSP shall be subject and subordinate to the prior payment and performance in full of all the obligations of us hereunder and we will not without prior written consent of the Authority exercise any legal right or remedy of any kind in respect of any such payment or performance so long as the obligations of us hereunder remains owing and outstanding.

 d)       This Guarantee will not be discharged due to the change in the constitution of the Bank or the OSP.


Dated……..day…………………         for  ….……………..……………
                                                                           (name of the Bank)

Witness :


1…………………………………….

2. …………………………………...



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