Idea Cellular and Tata Teleservices Limited (TTSL) are under the scanner of the Central Bureau of Investigation (CBI) for alleged violations of licence conditions in 2005-2006.
It is believed that the investigation has been spurred by the similarity of these lapses to those allegedly committed by Swan and Reliance Telecom. Also, the CBI is examining the Department of Telecommunications (DoT)?s alleged inability to act against Idea Cellular and TTSL.
The CBI is investigating the allocation of mobile permits between 2001 and 2007, which is part of a Supreme Court directed investigation. In Idea?s case, the investigation is at an initial stage and the CBI is yet to file formal charges or even register a first information report.
The investigators are focused on the validity of an application filed by Idea Cellular for the Mumbai circle in August 2005. At that time, both the Tata Group and the Birla Group owned more than 10 per cent in the company. The CBI believes that Idea Cellular?s application was invalid and should have been promptly rejected, as the Tatas were already operating CDMA-based mobile services in Mumbai.
Acceptance of the application was not possible as it would have resulted in the Tatas having more than 10 per cent stake in two operators functioning in the same area, which is not permitted.
Instead of being immediately rejected, the application was put on hold till Idea Cellular became compliant after the Tatas exited the company in 2006.
Meanwhile, in early 2011, Justice Shivraj Patil’s report submitted to DoT said that Idea Cellular did not fulfill the eligibility criteria on the date of application, but had retained its priority in the queue for mobile permit and airwaves in the Mumbai circle based on this date. The report also adds that DoT failed to get Idea Cellular to make a fresh application for Mumbai after the Tatas had exited the company.
