DoT seeks approval from Kapil Sibal for imposing penalties on RCOM and RTL

Earlier, DoT had imposed a penalty on RCOM and RTL for breaching mobile infrastructure regulations by unilaterally switching off mobile coverage in 12 states. According to DoT, both these companies disrupted telecom services by switching off more than 1,400 base stations funded from the Universal Service Obligation Fund (USOF) across 12 regions between November 16, 2010 and January 20, 2011. DoT imposed the penalty on the two companies based on the recommendations of its access services wing.

The unit had recommended that RCOM and RTL be charged a penalty of Rs 4.5 billion and 1.5 billion respectively in this case.

Thereafter, in November 2010, DoT issued show cause notice to RCL and RTL asking them to pay penalties for the alleged violation. Following the show cause notice, both the companies paid a total penalty of Rs 6 billion.

However, an NGO filed a public interest litigation in the Supreme Court on grounds that Sibal had waived the penalty imposed on the two companies. Sibal maintained that a higher penalty could not be levied on these companies since the issue was brought to his notice only in July 2011, by which time and RCOM had restored services. Therefore, no action could be initiated for termination of services as per the licence agreement signed between DoT and RCOM. Hence, a penalty was imposed on these companies only for disruption of services as per the agreement signed between USOF and RCOM. And the penalty was revised from Rs 0.5 billion crore to Rs 0.05 billion.

Thereafter, Sibal established a panel under DoT and asked the Attorney General of India for his views on the issue. Vahanvati endorsed Sibal?s stand on and suggested that DoT could parallelly pursue this matter under the UASL agreement.

Now, DoT is once again requesting Sibal to give it the go ahead to issue fresh show cause notice to both RCOM and RTL.