Loop wants licence fee back with interest

Loop Telecom, one of the several firms whose licence was cancelled by the Supreme Court early this month, has written to Prime Minister Manmohan Singh saying it will surrender the licence if the government refunds Rs 1,454 crore fee along with interest.

The company while seeking to highlight that interests of Indian companies too should be protected along with foreign firms', made the proposal to avoid litigation.

"We will surrender the licence, against the Department of Telecommunications (DoT) making a refund of licence fee of Rs 1,454 crore with interest. All our performance and financial bank guarantees may be released," Managing Director and CEO Sandip Basu wrote to the Prime Minister on February 17.

He said Loop Telecom has made investment in excess of 3,500 crore in its business.

Holding the government responsible for cancellation of licence by the apex court, Basu said that Loop Telecom is entitled to refund of licence fee of Rs 1,454 crore, compensation for additional investment already made till date (about Rs 2,000 crore) and compensation for loss of profits and damages of reputation.

Basu, however, said that Loop Telecom will not file a review petition or take any other proceedings for challenging the judgement of the Supreme Court that cancelled its licences.

He added that it will not seek any compensation of Rs 2,000 crore already made, damages on account of wrongful actions of the government/DoT.