Idea to challenge Rs 600 crore govt penalty notice
Dec 03 2013 , New Delhi
Idea is preparing to challenge the government order, it said in a filing to the stock exchanges.
In 2008, Idea agreed to buy smaller rival Spice Communications in a three-way deal that also gave Malaysia's Axiata about a fifth of Idea. Idea currently runs Spice operations in two zones as part its own operations.
The telecommunications ministry has said Idea violated rules as it held permits in zones where Spice had operations. Indian rules then prohibited companies to own 10% or more in a competing carrier in the same zone.
Idea has denied any wrongdoing and has said the merger was approved by courts. Idea shares largely ignored the news and were trading about 0.3% lower by 10:35 am.