Idea Got Relief from Rs 250 Crore Penalty

IdeaOn 5th of July, 2011 the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has asked the Department of telecom (DoT) to free the Idea Cellular from the hefty fine of Rs 250 crore. DoT imposed a fine upon Idea after finding it guilty for holding overlapping mobile permits in five telecom circles.

Idea has been in the news since it acquired Spice Communications. Spice Communications has the permission to operate in the six regions namely, Punjab, Karnataka, Andhra Pradesh, Delhi, Haryana and Maharashtra. However, the deal provided Idea a license to operate only in Punjab and Karnataka.

The Telco took the advantage of merging with Spice by connecting itself with the regions dominated by Spice. It has been reported that Telco linked its services to Spice region without taking prior permission from Spice.

However, the tribunal said that the step by Idea is punishable and can’t be redeemed by filling some documents. The tribunal said, “Non-compliance of the provisions of the code of civil procedure, in any event, by itself cannot be a ground to deny a just relief to the petitioner”. The tribunal has asked Telco to provide all the documents to DoT.

Following the announcement by the tribunal, the share of Idea felt a jerk. On the Bombay Stock Exchange, its shares fell by 2.16% and closed at Rs 77 per share.