Idea challenges fresh liquidated damages imposed for 2 circles

Aditya Birla group firm Idea Cellular today approached telecom tribunal TDSAT against the government move to impose additional liquidated damages on it for not meeting roll-out obligations in two circles.

Idea said the additional penalty has been imposed for the Haryana and Maharastra circles, for which the main penalty has already been set aside by TDSAT on December 5.

Questioning the rationale behind the fresh demand, the counsel appearing for Idea submitted, "when the principal demand is not sustained, then how come the additional demand has come".

The Telecom Disputes Settlement and Appellate Tribunal has directed the Department of Telecom to file reply on Idea's plea by Wednesday. It has also asked DoT not to take any action against the operator.

During the proceedings, Idea's counsel submitted that DoT has again slapped penalty without issuing any show cause notice and giving a chance for proper hearing.

The operator submitted that earlier also the tribunal had set aside DoT's order slapping penalty for five circles after observing that "no opportunity was provided to Idea to show cause" and it was against the principle of Natural Justice.

DoT had earlier imposed penalty of Rs 27.65 crore for delay in the roll-out of services in five circles - Karnataka, Punjab, Haryana, Andhra Pradesh and Maharashtra.

The tribunal had directed DoT to start the process afresh after observing that it has ignored the established procedures while arriving at the conclusion.