RCom moves TDSAT against DoT's refusal for GSM spectrum

Anil Ambani-led Reliance Communications (RCom) has moved telecom tribunal TDSAT against the government over non-allotment of GSM start-up spectrum in six states, where a subsidiary of the company was already offering GSM services.

RCom has alleged that despite giving In-Principle- Approval for six circles -- Bihar, Himachal Pradesh, Madhya Pradesh, Orissa, Kolkata and West Bengal -- on October 18, 2007, the Department of Telecom (DoT) withdrew the approval after a gap of over one year.

The company further contended that DoT had accepted the payment of Rs 112.56 crore towards entry fee for the spectrum for these six circles.

The government informed the company on December 24, 2008, of withdrawing "arbitrarily and without any rationale" the In-Principle-Approval granted to it, RCom said.

Last month, DoT had returned Rs 112.56 crore to RCom saying it was a mistake to accept the money from the operator as RCom was already in possession of GSM spectrum there and there was no question of duplicating it.

While applying for the spectrum, RCom had informed the DoT that its subsidiary, Reliance Telecom, was already operating GSM services under UAS licence given to it.

RCom submitted in the petition that at the time of giving In-Principal-Approval, DoT was aware of its subsidiary company Reliance Telecom and still accepted the payment after calculating the entry fee for the said six circles.