Kapil Sibal, Minister of Telecommunications and IT has accepted the recommendations of Additional Solicitor General Amarjit Singh Chandhiok to impose a Rs 3 billion penalty on Idea Cellular. Also, Sibal has given the go-ahead to the Department of Telecommunications (DoT) to impose this penalty for holding more than 10 per cent stake in two mobile companies in six regions of the country, in violation of existing norms.
According to an internal DoT note on this issue, the Telecom Regulatory Authority of India (TRAI) has recommended cancellation of the six overlapping mobile permits held by Idea Cellular, acquired after it took over Spice Communications in October 2008.
Prior to this, DoT obtained a stay order on the 2008 merger between Idea Cellular and Spice Communications from the Delhi High Court.
In response to this, Idea Cellular said that it planned to oppose this order and was in the process of filing the necessary application before the Delhi High Court seeking to lift the stay.
