The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed the Department of Telecommunications (DoT) to return the financial bank guarantee (FBG) submitted by Loop Telecom in 2006 for its national long distance (NLD) licence.
The tribunal has also asked DoT to pay Rs 50,000 as litigation cost to Loop Telecom.
TDSAT?s order has come over a petition filed by Loop Telecom against DoT regarding a dispute over release of FBG for NLD licence.
According to TDSAT, DoT cannot ask Loop Telecom pay the dues of another license holder, Loop Mobile.
The operator was awarded a NLD licence in 2006. However, it was not allocated spectrum for the same and therefore it could not start its services. Subsequently on September 8, 2010, the Loop Telecom surrendered its NLD licence and also notified the department that it has not launched services.
However, the Wireless Planning and Finance Wing (WPF) of DoT which is responsible for handling spectrum usage charges refused to grant no dues certificate to Loop Telecom.
According to DoT, Loop Telecom?s subsidiary unit Loop Mobile (India) had dues of Rs 37.2 million and it asked Loop Telecom to renew its bank guarantees on September 29, 2010 to settle the dues.
In turn, the operator offered to pay the dues and asked DoT to share with it the exact dues to be paid by it. DoT asked the operator to pay total dues of Rs 61.7 million.
