Trai imposes graded penalties for failure to file tariffs in time

Trai tightens compliance norms with graded penalties and interest for delays in tariff reporting by telecom service providers

The Telecom Regulatory Authority of India (Trai) on Tuesday introduced stricter penalties for telecom service providers for failing to report changes to their tariff plans within seven working days of implementation. The regulator will begin levying graded penalties, starting with ₹10,000 per day for the first seven days of delay, escalating to an additional ₹20,000 for each subsequent day beyond the seven days, capped at ₹5 lakh. At present, the failure to comply with the reporting requirement attracts a fine of ₹5,000 per day of delay, up to a maximum of ₹2 lakh. 

Trai also introduced a new clause, mandating interest at 2 per cent above State Bank of India's (SBI’s) one-year marginal cost of lending rate (MCLR) in case the penalties are not paid up, where partial months will be treated as full months for calculations, as per changes made in the Telecommunication Tariff (Seventy Second Amendment) Order, 2026. 

 

The Clause 7A, dealing with excess charges, has been removed to avoid overlap with other regulations. The regulator has discretion to waive or reduce penalties where a service provider furnishes credible reasons for the delay. Trai issued the amendment after deliberations with stakeholders, having first introduced the draft changes in October last year.

 

While tariff itself falls under forbearance, the regulator said filing tariffs by telecom service providers "cannot be treated as a minor or merely procedural requirement. On the contrary, it constitutes a fundamental regulatory obligation and forms the backbone of the forbearance regime”.

 

In its explanatory memorandum, Trai justified the graded structure. "Introducing graded financial disincentives shall ensure that the penalty imposed is proportionate to the gravity of the contravention, the intent of the service provider, and the impact of the violation," the regulator said.

 

“Specifying a ceiling on the total financial disincentive helps prevent excessively high penalties or punitive outcomes, particularly in cases of minor or unintentional violations. A capped framework ensures that financial disincentives act as an effective deterrent, without causing undue financial stress to service providers, especially smaller entities, thereby safeguarding service continuity and consumer interest,” Trai said.

 

The regulator explained that the intention of levying interest in case of delayed payments of penalties was to discourage intentional delays and ensure timely compliance with regulatory orders. “This measure not only promotes timely and responsible financial conduct but also reinforces the importance of adhering to regulatory obligations,” it said.

 

Trai noted that delays hinder oversight on transparency, non-discrimination, and non-predation principles, potentially harming consumers nationwide. "Any lapse in timely and accurate reporting has wider implications as it directly affects consumers and the orderly functioning of the market," it added.

 

The regulator also noted that the provision that allows it to waive or reduce penalties acts as a “safety valve in regulatory enforcement as it will avoid one-size-fits-all penalties”.

 

New penalty structure  Reporting requirement 

 

— Within seven working days: No penalty

 

— Delay for first seven days: ₹10,000 per day

 

— Delay beyond seven days: ₹10,000 plus ₹20,000 per day 

Cap: ₹5 lakh per day 

 

— 2 per cent plus MCLR as interest on amount not paid