DoT may send notices to Vodafone, Idea, Airtel in Matrix case

The Department of Telecom is working on issuing fresh show-cause notices to Vodafone, Idea Cellular and Airtel for allegedly violating licence conditions while renting SIM cards to Matrix Cellular in Delhi.

"In line with TDSAT decision dated 17-07-2012, it is proposed at this stage to first give SCNs to these licensees, let them show cause and subsequently the committee formed for the purpose can analyse the reply, decide the culpability and recommend the penalty," according to an official source.

It added that the internal wing of DoT, working on the matter, has put up the file for approval of fresh SCNs for the three companies before starting proceedings against them under certain licence conditions.

None of the companies involved offered any comment.

In 2007, DoT said the three companies rented SIMs to Matrix Cellular in bulk, violating subscriber verification norms and causing loss to the exchequer by not showing the revenue gains from the deal in Adjusted Gross Revenue, based on which it levies various fees on telecom operators.

DoT had earlier issued demand notice of Rs 50 crore to these companies in November 2011 but they approached TDSAT against the notice.

Telecom tribunal TDSAT in its order on the matter on July 17, 2012 said: "Petitioners may be served again with a show cause notice. They on receipt thereof must file their respective show causes within two weeks from the date of receipt thereof."

DoT has also been looking at the option to challenge the TDSAT order before the Supreme Court.