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04-07-2012, 09:07 AM #1
DoT may move SC against TDSAT's Idea order
The government is planning to challenge in the Supreme Court the telecom tribunal TDSAT ruling that had set aside a DoT order imposing Rs 27.65 crore penalty on Idea Cellular for delaying its roll-out obligations in five circles.
According to sources, discussions are on within DoT on challenging the TDSAT order in the apex court.
In a judgement in December, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had set aside DoT's order imposing penalty on the Aditya Birla group firm for delay in roll-out obligations.
TDSAT was of the view that there was a need to issue Show Cause Notice (SCN) to give Idea an opportunity to present its case.
DoT had imposed liquidated damages worth Rs 27.65 crore on Idea Cellular along with Spice Communications for missing roll-out targets. Spice Communications was acquired by Idea in 2008.
Idea Cellular was served demand notice for missing the roll-out targets in Karnataka and Punjab service areas.
Telecom licenses of company for both these circles has been cancelled by Supreme Court in February along with 120 other telecom licences of various companies.
Spice Communications was penalised for Haryana, Andhra Pradesh and Maharashtra circle.
In the notice, Idea and Spice were asked to pay Rs 7 crore each, for delay of over 52 weeks in Karnataka and Andhra Pradesh circles. As per license conditions, the company has to be given SCN as there was a delay of over 52 weeks.