Loop Telecom has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) seeking compensation for the cancellation of its 2G licenses issued in 2008. Loop?s licences were among the 122 2G licenses canceled by the Supreme Court in February this year.
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Loop Telecom?s Mauritius-based investors, Capital Global and Kaif Investment, have also invoked the India-Mauritius bilateral investment treaty for seeking compensation, thereby making it the third company to threaten international arbitration following Norway?s Telenor and Russia?s Sistema.
It has moved TDSAT asking to refund entry fee paid for acquiring telecoms licenses, release of performance bank guarantees and damages for tarnishing the reputation of the company. The total damages that the telecom company is seeking from government and the Telecom Regulatory Authority of India (TRAI) are about Rs 47 billion.
In its plea filed, Loop Telecom has sought a refund of Rs 14.54 billion licence fee paid for obtaining the 21 mobile permits in 2008 issued by former telecommunications and IT minister A Raja, and an interest of 7.37 billion at SBI prime lending rates till April 31, 2012. Loop Telecom has also demanded discharge of its performance bank guarantees worth Rs 6.96 billion, and has asked the government to return the wrongly levied liquidated damages of Rs 78 million with interest.
TDSAT has set the date of hearing of the issue as July 17, 2012 and has issued notices to the ministry of communications and IT and the TRAI.
