The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed the Department of Telecommunications (DoT) to return the performance bank guarantee (PBG) submitted by Videocon Telecom at the time of spectrum allocation in five circles, say news reports.
According to TDSAT, DoT could not hold back the PBGs submitted by the operator for five years, even though the operator had completed its roll-out obligation within the given timeframe.
As per TDSAT, the Telecom Enforcement, Resource and Monitoring (TERM) Cells of DoT had already issued a certificate for the completion of the operator’s roll-out obligation from July 2010 to May 2012. Therefore, the tribunal said that there should have been no delay in revision of the RBGs by DoT.
Earlier, Videocon Telecom had approached TDSAT requesting it to direct DoT to revise its PBG following the completion of the roll-out obligation by the operator.
Videocon Telecom has been seeking revision in RBG for four circles, Himachal Pradesh, Orissa, Rajasthan, Uttar Pradesh (West) and Karnataka. The operator claimed that it had completed the mandatory 50 per cent and thus its PBG should be reduced. However, DoT did not take any action on its request, thereafter it approached TDSAT.
