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TDSAT asks Uninor to pay Rs3.8 crore penalty

TDSAT asks Uninor to pay Rs3.8 crore penalty
PTI
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First Published: Mon, Feb 14 2011. 06 30 PM IST
Updated: Mon, Feb 14 2011. 06 30 PM IST
New Delhi: The telecom tribunal TDSAT on Monday directed Uninor to pay Rs3.8 crore to the government as penalty for delay in rolling out services in Mumbai circle, as per its license conditions.
Passing an interim order, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) directed Uninor to pay Rs3.8 crore, 60% of the penalty imposed by the Department of Telecom, in Mumbai circle.
TDSAT’s direction came over a petition filed by Uninor challenging Rs6.35 crore penalty imposed by the DoT on it for not complying with the roll-out obligations.
The DoT on 1 February, has issued notice to Uninor directing it to pay the sum penalty within 15 days for failing to roll-out 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 22 March, 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 roll-out 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 60% 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 Department of Telecom (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 licenses bundled with start up spectrum but have not begun offering services in various circles.
As per the conditions of the Unified Access Service License (UASL), the telcos are required to roll-out 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.
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First Published: Mon, Feb 14 2011. 06 30 PM IST