TDSAT asks Uninor to pay Rs 3.8 cr penalty

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today directed Uninor to pay Rs 3.8 crore to the government as penalty for delay in rolling out services in Mumbai circle, as per its licence conditions.

Passing an interim order, the TDSAT directed Uninor to pay Rs 3.8 crore, 60% of the penalty imposed by the Department of Telecommunications (DoT), in Mumbai circle.

TDSAT's direction came over a petition filed by Uninor challenging Rs 6.35 crore penalty imposed by the DoT on it for not complying with the rollout obligations.

The DoT on February 1, issued notice to Uninor directing it to pay the sum penalty within 15 days for failing to rollout services within stipulated period.

TDSAT's bench headed by its chairman Justice S B Sinha also issued notice to DoT, directing it to file its reply within two weeks and posted the matter for further hearing on March 22, 2011.

Today's tribunal order was based on an earlier order passed by it directing Uninor to pay 60% of the penalty imposed on it, as an interim measure.

In January, TDSAT had directed Uninor, to pay 60% of the penalty demanded by DoT in 15 circles for failing to rollout services within the stipulated time.

It has already paid penalty for four circles under protest.

Out of 22 circles alloted to Uninor, the DoT has imposed penalty on it for delay in rolling out services in twenty circles.

Uninor is a joint venture between reality firm Unitech and telecom firm Telenor of Norway.

The DoT has issued notice to Uninor seeking Liquidated Damages (LD) for not rolling out its network in 20 circles within stipulated period of one year.

Uninor is one of the new operators which was allotted 2G spectrum, or radio waves, by former telecom minister A Raja and is under scanner on eligibility criteria.

DoT had sent notices to several firms which got new 2G licences bundled with start up spectrum but have not begun offering services in various circles.

As per the conditions of the Unified Access Service Licence (UASL), the telcos are required to rollout their networks within one year from the date of allocation of spectrum.

According to the agreement, in case new licencees fail to roll-out services within the stipulated period, DoT shall be entitled to recover LD charges.