3G: Centre restrained from taking steps against Vodafone, Idea

Delhi HC restrained the Centre from taking any "coercive steps" against the telecom majors which have been asked to pay penalties

In a breather for Vodafone and Idea Cellular, the Delhi High Court today restrained the Centre from taking any "coercive steps" against the telecom majors which have been asked to pay penalty of Rs 550 crore and Rs 300 crore respectively for providing 3G services outside their circles without requisite licences.

Justice Rajiv Shakdher, referring to a Supreme Court order on a plea of Bharti Cellular Ltd in a similar case, asked the Department of Telecommunications (DoT) not to take any coercive steps in pursuance of its notices issued to the telecom companies asking them to stop providing 3G services to mobile users in the circles for which they lacked licences.

"Meanwhile, the petitioners (Vodafone and Idea Cellular) are directed not to add new customers for providing 3G services," Justice Shakdher said and issued a notice to the DoT to file its reply to two separate petitions of the telecom service providers.

Senior advocates A M Singhvi and Maninder Singh, appearing for Idea Cellular and Vodafone respectively, sought the stay on the operation of DoT notices asking the telecom majors to pay the penalty and stop providing 3G services outside their licence areas by entering into intra-circle roaming pact with other telecom firms.

Distinguishing between the case of Bharti Cellular Ltd and that of Idea and Vodafone, Singhvi said, "In our case, no committee was constituted to hear us and not only the order of the division bench but the principle of natural justice was violated. Our case is different from that of Bharti Cellular Ltd."

Meanwhile, the court allowed the plea of another senior lawyer Mukul Rohatgi that Reliance Communication Ltd be impleaded as a party to the petitions filed by Vodafone and Idea Cellular.