Loop Telecom has moved The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) seeking compensation for cancellation of its 2G license.
It has moved TDSAT asking to refund entry fee paid for acquiring telecoms licenses, release of performance bank guarantees and damages for tarnishing reputation of the company. The total damages that the telecom company is seeking from government and the Telecom Regulatory Authority of India are about Rs 470 million.
In its plea filed with the TDSAT, Loop Telecom has sought a refund of Rs 14.54 billion licence fee paid while obtaining 21 mobile permits in 2008 issued by former telecommunications and IT minister A Raja, and an interest of 7.3 billion at SBI prime lending rates till April 31, 2012. Loop Telecom has demanded discharge of its performance bank guarantees worth Rs 6.96 billion, and asked the government to return wrongly levied liquidated damages of Rs 78 million with interest.
The 122 2G licenses issued in 2008 were canceled by the Supreme Court in February, 2012. TDSAT has issued notices to the Ministry of communications and IT and the Telecom regulatory Authority of India (TRAI). TDSAT has set July 17, 2012 as the date of hearing of the issue.
Loop Telecom?s Mauritius-based investors, Capital Global and Kaif Investment, have invoked the India-Mauritius bilateral investment treaty, making it the third company to threaten international arbitration following Norway?s Telenor and Russia?s Sistema.
