DoT may withdraw Rs 1,000 cr penalty on Loop

The company had violated 2G spectrum licence by discontinuing operations in 20 circles

The Department of Telecommunications (DoT) has decided to withdraw the proposed penalty of about Rs 1,000 crore on Loop Telecom for allegedly violating 2G spectrum licence norms by discontinuing operations in 20 circles.

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

According to a recent communications, the DoT, following special hearings, has decided that the penalty should be nil in 20 licence areas.

After the initial notice from the DoT, the company had approached the SC that stated DoT was not entitled to levy damages and penalty on the company for the period after June 1, 2012. Following this, the DoT sought legal opinion.

In a separate communications Loop CEO Sandip Basu had also stated that the DoT's demand of about Rs 800 crore was subjudice and the matter is being heard in the TDSAT. Loop has agreed to pay according to the final judicial determination, Basu said in his communication.

Meanwhile, Loop has sought time till October 31 to comply with the dictates of the Telecom regulatory Authority of India to inform all its customers about closure of services.