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Law Min nod for DoT action against Idea & Spice: Sources

Published on Wed, Oct 05, 2011 at 21:05 |  Source : CNBC-TV18

Updated at Fri, Oct 07, 2011 at 09:20  

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The law ministry may have given a green signal to the Department of Telecom (DoT) to issue show cause notices to Idea Cellular and Spice , CNBC-TV18's Kritika Saxena reports. 

It was in the offing for sometime now. There has been a lot of too-ing and fro-ing on this but CNBC-TV18 sources indicate that the law ministry has finally given its nod to the DoT to issue show cause notices to both Idea and Spice for violations in rollout obligations.

In the case of Idea, CNBC-TV18 understands that the Assistant Solicitor General has given a nod to issue show-cause notice to the Punjab license. In the case of Spice, it is for the Haryana and the Maharashtra license.

In addition the law ministry has also given his nod to levy additional liquidated damages on both the companies. Post the nod the DoT has gone through the regular motions. In fact sources said that telecom minister Kapil Sibal has also given his approval.

When contacted the company sources indicated that the final notice has not been received as yet but they are expecting the fine for the Punjab license to go up to around Rs 50 crore.

On their side, of course, the Telecom Tribunal has stayed the DoT's demand of around Rs 30 lakh for the West Bengal circle. That is one area that is safe but clearly the Punjab circle that has been an overhang for quite sometime, but now seems to be coming to an end.

This could be the beginning of an end for this particular issue and the DoT and Idea struggle which has been going on for quite some time.

  

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