DoT hands over original files to CBI on Idea-Spice merger

The DoT committee had give conditional go-ahead to merger of two licences in Karnataka and Punjab circles

The process of merger between Idea Cellular and Spice Communications takes a new turn.

The Department of Telecommunications (DoT) has handed over four relevant files to the deputy superintendent of Police, Central Bureau of Investigations (CBI), Anti Corruption Branch, as the investigative agency had asked, according to a recent discussion of the DoT.

Meanwhile, in October, a committee of the DoT had recommended Rs 600-crore penalty on Idea Cellular for its merger with Spice Communications stating that the company’s move had violated licence conditions in six telecom zones.

But, the DoT committee had give conditional go-ahead to the merger of the two licences in Karnataka and Punjab circles.

In 2008, Idea Cellular had acquired a 41.09% stake in Spice Communications. The companies merged in 2010, which resulted in overlapping of licences in six circles.

At the time of the merger, both the companies had licences for Andhra Pradesh, Delhi, Haryana, Maharashtra, Punjab and Karnataka. As per the rules, a telecom operator cannot hold more than 10% stake in another operator in the same circle.

In February 2012, Idea Cellular’s licences for Punjab and Karnataka circles, and Spice Communications’ operating permits in Andhra Pradesh, Delhi, Haryana and Maharashtra were quashed as part of the Supreme Court order that cancelled 122 telecom licences for alleged irregularities in licence allocation during the then telecom minister A Raja.