DoT may withdraw penalty on Loop Telecom

The Department of Telecom may withdraw a penalty of about Rs 1,000 crore on Loop Telecom for allegedly violating 2G spectrum licence norms by discontinuing operations in 21 circles.

Loop Telecom was one of the companies whose licences were quashed by the Supreme Court on February 2, 2012. Following the order, the company discontinued services from June 1 that year and preferred not to bid in the fresh spectrum auction.

According to sources, a senior advocate has opined that DoT cannot levy the penalty as it would be contempt of court.

The DoT had issued a show-cause notice to Loop Telecom in November 2012 for discontinuing its operations and said it would impose a Rs 1,000 crore penalty for allegedly violating licence norms.

The company approached the SC, which stated that DoT was not entitled to levy damages and penalty on the company for the period after June 1, 2012.

The DoT sought legal opinion on whether to seek a review of the court order or withdraw the penalty.

According to sources, senior advocate P P Rao was of the opinion that DoT cannot levy damages on the company.

"I am of the opinion that Department cannot levy damages and penalty for the period subsequent to June 1, 2012, for the licensee's failure to carry business...It would be contempt of court to take a stand contrary to the court's order," Rao is believed to have said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Merger of FMC with Sebi could be precursor to a super markets regulator

    Finance minister Arun Jaitley’s decision to merge commodity market regulator FMC with market watchdog Sebi is a welcome step.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Simon J Evenett

Who blinked first, Greece or Germany?

Long dismissed as being stuck in our ivory towers, we ...

Kuruvilla Pandikattu SJ

Human bias towards happiness

There is a universal bias for positive words and ...

Shona Adhikari

Art world celebrates two ‘new’ Cezannes

The focus moves once more to post-impressionist Paul Cezanne, who ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture