Mumbai April 8: In what is a significant victory for the Anil Dhirubhai Ambani Group (ADAG), a Netherlands-based district court in the Hague has upheld an order by the arbitration tribunal of the International Chamber of Commerce in 2006 directing Videsh Sanchar Nigam Ltd (VSNL, now Tata Communications) to permit Reliance Globalcom (formerly Flag Telecom) to upgrade its bandwidth capacity at the cable landing station in Mumbai.

The district court has also ordered the Tata group company to pay proceeding charges of euro 13,092 plus euro 12,844 for legal representation to ADAG.

The decision comes just ahead of a final verdict on the dispute in which Flag Telecom has separately sought $400 million (Rs 1,600 crore) in damages. Hearings for this issue have ended.

Under an agreement with VSNL, Flag terminated its undersea cable at the Tata group company's landing station at Mumbai.