The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has admitted Idea Cellular petitions against the Department of Telecommunications (DoT) decision to impose Rs. 300 crore penalty on the network provider for allegedly holding more than 10 per cent stake in two telecoms in six circles.

Telecom tribunal TDSAT ruled that the Department of Telecommunications should give some logic for reaching such decision.

Pronouncing its ruling, the TDSAT said, "These petitions are allowed. The respondent (government) is directed to exercise its discretion and pass a fresh order upon complying with the principles of natural justice."

It added that the Department of Telecommunications should give some reasoning for reaching its decision to impose a maximum penalty of Rs. 50 crore for each circle.

The huge penality was imposed on February 24, 2011, on Spice Communication, which was later merged with Idea. Under UASL Guidelines, a mobile phone company can not hold more than 10 per cent stake in two firms operating in the same regions.

Spice had licences for in six circles, including Delhi, Punjab, Haryana, Karnataka and Andhra Pradesh. Idea also had licences for the same circles. Later, the two companies merged, and Idea became the holder of licences previously held by two separate companies.