Idea Cellular, which is facing a Rs 3 billion penalty for allegedly violating merger and acquisition norms, has been given unfair treatment by the Department of Telecommunications (DoT), according to the Cellular Operators Association of India (COAI).
The COAI said that the operator had approached the DoT to surrender the six overlapping licences in 2008 but the department did not take a decision.
Therefore, according to Rajan Mathews, director general, COAI, the present situation has arisen because of DoT?s inaction. He added that the DoT has been sitting on the issue for three years, even after Idea Cellular wrote to them. Therefore, the latest legal view blaming the company is a knee-jerk reaction aimed at washing their hands off the case.
COAI’s statement follows the additional solicitor general of India’s opinion that Idea Cellular was in violation of the merger and acquisition norms.
The additional solicitor general has suggested stringent penalties including a Rs 3 billion fine, withdrawal of 3G spectrum in four circles and cancelling 2G licences in six circles.
The proposed penalty is for allegedly violating merger and acquisition norms when the Aditya Birla Group company bought equity stake in Spice Telecommunication in 2008.
Meanwhile, Idea Cellular has approached the Telecom Dispute Settlement Appellate Tribunal (TDSAT) seeking damages.
In a statement filed by Idea with TDSAT, idea said that DoT had failed to appreciate that the petitioner (Idea Cellular) has been at the mercy of DoT all through. The petitioner has already paid the money and continued to inform DoT about all the steps made in the matter of merger of Spice with Idea. Moreover, DoT had agreed that Spice can merge with Idea even before expiry of three years and Idea had waited for several months for DoT to issue a formal letter permitting the merger.
