The government, which owns 26 percent in Tata Communications, could block shareholder approval of the deal if Tata Teleservices fails to pay its dues.
The government could halt Tata Communications Ltd's proposal to buy the enterprise business of Tata Teleservices Ltd if the latter does not pay its dues to the government, the Mint reported.
Tata Teleservices owes the government as much as Rs 10,000 crore, which includes spectrum-related charges and licence fee dues, a telecom ministry official told the paper.
The government, which owns 26 percent of Tata Communications, could block shareholder approval of the deal if Tata Teleservices fails to make the payment.
However, the report claimed that Tata Teleservices has already asked the government to collect the payment at a later date.
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Moneycontrol could not independently verify the report.
Tata Sons chairman N Chandrasekaran met telecom secretary Aruna Sundararajan earlier this month to discuss the proposed transaction.
In October lat year, Tata Teleservices agreed to sell its mobile business to Bharti Airtel in an 'debt-free, cash-free' deal.
The transaction is still pending approval from the National Company Law Tribunal (NCLT).