DoT says no to granting watchdog sharper teeth

Regulator wants the power to fine errant telecom companies.

The department of telecommunications (DoT) has shot down a demand by the telecom regulator to be granted powers to penalise erring operators under the Trai Act.

The development comes as various ministries discuss a draft Cabinet note that proposes key changes to the Trai Act. With differences in opinion cropping up on several important issues, a detailed report of all the views has been prepared before the final draft of the Cabinet note is drawn up by the communications ministry.

The Telecom Regulatory Authority of India (Trai) had contended that powers to levy penalties have been conferred on markets regulator Securities & Exchange Board of India under Section 15A of the Sebi Act, 1992, and on the recently constituted Competition Commission of India under the Competition Act, 2002.

An adjudicating officer can impose a fine under the Sebi Act on those who fail to furnish information under Section 15A. The Competition Commission also has sweeping powers to impose penalties should its directions not be complied with.

Trai had suggested it be vested with similar powers in certain instances, including cases where a telecom company refuses to furnish documents or returns, fails to maintain accounts and records, or fails to supply information within a stipulated period, among others. It had suggested fines of Rs 1-3 lakh.
 

ON A LEASH

What is Trai’s demand?
That it be allowed to penalise firms for certain infringements

Who has such powers?
Markets regulator Sebi & CCI can fine entities for non-compliance

Why is Trai excluded?
DoT says adjudication does not fall within its purview under law 

The telecom regulator had also pushed for amendments to clauses in the Act dealing with fines for contravening its directions. However, Trai argued that punishment for such offences should be imposed by a criminal court.

DoT, however, has rejected Trai’s recommendations on various grounds. It has argued that under existing legislation, adjudication does not come under the purview of the regulator and that its function is only to regulate telecom services.

This area is to be dealt with by courts and Telecom Disputes Settlement & Appellate Tribunal, a quasi-judicial body for appeal in the sector. DoT says the ministry of legal affairs concurs with its position that the regulator cannot levy fines under the Trai Act.